cover1-4(6.23)E 01.6.26 10:47 AM ページ 1

Sony Corporation Environmental Report 2001 Sony Corporation

Entertaining the world, caring for the future

Printed on 100% recycled paper (Data section 100% recycled magazine paper). Printed in Japan Printed using VOC(Volatile Organic Compound)-free vegetable oil based ink. June 2001 Environmental Report 2001 0106-03OP01E cover1-4(6.23)E 01.6.26 10:47 AM ページ 2

4 Key Questions & Answers

Q1 How does Sony promote environmental management?

A beech tree aged approximately 400 years in the mountainous Shirakami district of Aomori Prefecture, a World Heritage site. Q2 What kinds of environmental considerations is Sony pursuing?

Sony welcomes questions, comments and suggestions regarding the contents of this Environmental Report and the Sony Group’s environmental activities. Please contact us at one of the following five Sony Environmental Conservation Committee offices.

Inquiries

Japan Americas Europe What serves as the basis for Sony’s environmental activities? Corporate Environmental Affairs Corporate Environment, Safety and Health Environmental Center Europe Sony Corporation Sony Electronics Inc. Sony International (Europe) GmbH Q3 What other kinds of environmental communication is 6-7-35, Kita-Shinagawa 16450 West Bernardo Drive Advanced Technology Center Stuttgart Shinagawa-ku, Tokyo 141-0001 San Diego, California 92127-1898, USA Heinrich-Hertz-Strasse 1, D-70327 Stuttgart, Germany Sony conducting? Telephone: 81-3-5448-3533 Telephone:1-858-942-2716 Telephone: 49-7-11/58 58-308 Facsimile: 81-3-5448-7838 Facsimile: 1-858-942-9181 Facsimile: 49-7-11/5 78 98 33 E-mail: [email protected] E-Mail: [email protected] E-Mail: [email protected] http://www.world.sony.com/eco http://www.sel.sony.com/SEL/esh http://www.sony-europe.com/eco

Asia China Environment, Safety & Health Asia Sony (China) Limited Shanghai Branch Sony Electronics (Singapore) Pte Ltd. 43F. HSBC Tower, 10 Hoe Chiang Road 101 Yin Cheng East Rd., Pudong New Area #23-00 Keppel Towers Singapore 089315 Shanghai 200120 P.R.C. Telephone: 65-2233188 Direct: 65-3291405 Telephone: 86-21-68412203 Facsimile: 65-3291400 Facsimile: 86-21-68415757 Q4 How does Sony evaluate its environmental management activities? E-Mail: [email protected] E-Mail: [email protected] For up-to-date information concerning Sony’s environmental Environmental exhibition room: Sony Eco Plaza conservation activities, please visit the following site: Learn about Sony’s environmental activities through Sony environmental conservation activity homepage visuals and demonstrations. We look forward to your visit. http://www.world.sony.com/eco Reservations/Inquiries: For Sony’s latest business results and other information, Telephone: 81-3-5448-4455 please visit the following site: Facsimile: 81-3-5448-2560 Sony homepage http://www.sony.co.jp Corporate Data Vision Commitment to Create a Vision Sustainable Society A Message from Management Sony Environmental Vision Performance Evaluation System for Network Companies Sony takes a comprehensive approach to Environmental Management environmental problem solving, because the Mechanisms and Structure problems are complex and varied. Sony introduced A1 The Sony Group’s the “Sony Environmental Vision” in October 2000, positioning Material Balance and “Vision” as the highest priority, followed by Sony’s Environmental Accounting “Commitment” and “Driving Forces.” Environmental activities Vision Sony Mid-Term Environmental conducted throughout the world since that time have Action Program “Green Management 2005” reflected the Sony Vision. In March 2001, Sony formulated the Sony Mid-Term Environmental Action Program, Green “Green Management 2002” Realization of a sustainable society Mid-Term Environmental Action Management 2005, to promote progress toward the society through innovative technology Program Progress Review illuminated by the Vision. With this as a basis, Sony is and creative business Green Procurement and conducting environmental management aimed at realizing a Purchasing sustainable society. Energy Conservation Action Resource Conservation and Waste Management

Chemical Substances From product planning, through raw materials Management procurement, manufacturing, sales, distribution, Commitment Facility Design and Construction customer use and service to recycling at the end, A2 Product Planning and Design the nature and volume of the environmental impact differ in each stage of the life cycle. The measures implemented Environmentally Conscious Products consequently vary in each stage. Distribution, Sales and Service Today, Sony’s operations are diversifying into various fields — including entertainment, games and insurance — besides Product Recycling the manufacture and sale of electronic equipment. Sony also Contribution to the environment Environmental Activities in Various assesses environmental impact and promotes activities to in every stage of business Business Operations reduce it in these new businesses. Corporate Information Risk Citizenship Disclosure Management Environmental Technology Development

Environmental Education and Support Programs Sony endeavors to have every employee conduct Technology business in accordance with an ISO14001-based Environmental Business Models A3Environmental Management System. Sony has added to this system’s comprehensiveness and stability by Support Systems accelerating activities based on three driving forces — Environmental Communication business models, technology and education — and by implementing an environmental risk management system and Risk Management System and Environmental Auditing combining it with an occupational health and safety system. Sony cooperates with local communities. Sony also Occupational Health & Safety discloses information through various media to promote Business Models Education and Disaster Prevention environmental communication with a diverse range of people Three Driving Forces who share its concerns, and feeds their opinions and Community Relations Activities comments back into its activities.

Environmental Accounting

Data Energy

Water Sony measures its global environmental impact quantitatively. Sony analyzes environmental Chemical Substances impact according to region and environmental Sony’s Total A4 Waste aspects and discloses information concerning it, including Environmental Impact information on management resources investment and its Pricewaterhouse Products effects. Information concerning individual operations can be Coopers Data at a Glance obtained from various site reports. Finally, Sony has further ensured the reliability of its Independent Verification Report collection/reporting processes concerning information and Impact data A Message to the Reader data by linking them to third-party verification reports for individual sites prepared by the PricewaterhouseCoopers accounting firm. Report Questionnaire

Inquiries Vision

About Sony’s Environmental Report Sony, including both Sony Corporation and the Sony Group companies* operating

Corporate Data around the world, has published environmental reports since 1994. In fiscal 1999, Sony revised its environmental data book, the Sony Environmental Review. This current environmental report covers Sony’s activities in fiscal 2000, the period from April 1, 2000 to March 31, 2001. Sony plans to issue its next environmental report in 2002. In this report, the expression ‘Sony’ and ‘Sony Group’ are used respectively to refer to the companies of Sony Corporation and of the Sony Group as a whole.

*Sony Group companies include consolidated companies in which Sony holds a share of capital in excess of 50% and joint-venture companies in which Sony’s investment is 50% or above. Corporate Data

Headquarters: 6-7-35 Kita-Shinagawa Shinagawa-ku, Tokyo, Japan Established: May 7, 1946 Employees: 181,800 (as of March 31, 2001) Sales and operating revenue: 7,314,824 million yen Operating income: 225,346 million yen

Sales and operating revenue Main Business Areas by geographical segment Electronics Pictures Audio Movie/TV programming Video business Other Televisions Japan Information and Insurance 17.2% communications Life insurance/non-life 32.8% Electronic components insurance businesses and others 20.2% Others Games Leasing and credit card Europe Game console and 29.8% software businesses businesses, development and operation of location-based United entertainment complexes, Music States Music software business other businesses

Financial Affairs Highlights

Sales and Operating Revenue Operating Income Net IncomeCapital Expenditure R&D Expenses (additional fixed assets)

(Billion yen) (Billion yen) (Billion yen) (Billion yen) (Billion yen) 8,000 600 250 500 500 465 7,314 222 514 435 6,761 6,804 416 6,686 500 200 400 387 400 394 5,658 375 6,000 179 353 400 318 352 139 298 282 338 150 300 300 121 4,000 300 223 225 100 200 200 200 2,000 50 100 100 100 16 0 0 0 0 0 96 97 98 99 00 FY 96 97 98 99 00 FY 96 97 98 99 00 FY 96 97 98 99 00 FY 9697 98 99 00 FY

Sales by Business Operating Income Ratios Segment

Others Electronics Pictures Electronics 1.6% 1.5% Insurance Insurance 5.8% 6.1% Pictures Music 7.6% 7.0% Music 7.8% * For the year ended March 31, 2001 Games 8.8% 68.4% 85.3% * Includes intersegments * Losses suffered by the games and others categories have been treated as zero in the operating income ratios for purposes of convenience. * Net income for fiscal 2000 reflects the new accounting standards for pictures.

2 Vision/Commitment to Create Vision/Commitment a Sustainable Society

Vision Sony recognizes that conservation of the global environment is one of the greatest tasks facing humanity in the 21st century. Through continuous technological innovation and new business initiatives, Sony intends to contribute positively to the natural environment and the dreams of future generations. Recognizing the utmost importance of the global environment, the Sony Group’s top business priority is sustainable development. This entails utilizing Sony’s environmental resources in a manner that will also allow future generations to achieve their potential in health, wealth and happiness. Sony aims to show that it is possible to achieve a new balance between humankind and nature by doing more with less, reducing the environmental impact from its use of energy and resources while providing its customers with high- quality, high-performance products and services. Sony employees will be encouraged to study constantly to learn about a broad variety of environmental issues. Sony will also cooperate closely and continuously with stakeholders in a joint quest to improve the world that we share.

From the Sony Environmental Vision

The Global Environmental Policy has matured into the Sony Environmental Vision.

Commitment to Create a Sustainable Society

Sony recognizes the relationship between its business activities and environmental issues and will take vigorous measures to help improve conditions globally for sustainable development. The following summarizes Sony’s stance on four important issues related to environmental sustainability.

Climate Change Natural Resources

Sony is working to help prevent global warming and other The Earth has limited resources, including raw materials, energy aspects of climate change pertaining to its business activities. In and water, that must be used and reused efficiently. Sony is addition, Sony is committed to the continuous reduction of pursuing a continuous increase of resource productivity in its greenhouse gases generated by its sites, its suppliers and business processes and the reduced use of virgin materials, vendors, its customers and society. energy and water whenever possible. Sony is consequently promoting the reuse and recycling of resources.

Chemical Substances Natural Environment

Sony’s production processes presently require the use of some The biodiversity of the Earth must be maintained, and Sony chemical substances that, if not properly handled, could cause actively supports protecting the biodiversity of the world’s forests environmental risk. Sony will apply a precautionary approach to and oceans. Sony realizes that food and water will become more the use of new chemical substances and search for technological significant issues around the world as the global population substitutes for potentially hazardous materials. Sony is continues to increase. Sony recognizes the importance of these committed to the progressive and continuous reduction and, issues. whenever possible, the phase-out of potentially hazardous materials and chemicals in its business process.

3 Vision

A Message from Management A Message from Management At a time of growing concern about environmental issues and a consequent intense interest in corporate environmental conservation activities, managing a company without considering the environment is no longer viable. Environmental issues are fundamental problems. Ever since human beings stepped out of the Earth’s ecosystem to form an independent human society some 10 thousand years ago, we have continuously degraded the environment. The Industrial Revolution of the 19th century and rapid expansion of industrial systems have exacerbated the problems. Today, some people are voicing fears that unrestrained human activity could lead to the collapse of Earth’s ecosystem itself in just two or three centuries. The Sony Group operates worldwide, manufacturing and selling some 100 million unit products and two billion disks and tapes annually. The environmental burden imposed by our operations, including the consumption of power by our products during operation and the waste stemming from the final disposal of products, has increased by a considerable extent. Intensely aware of this problem, we have positioned environmental preservation as a “key long-term management challenge”. We have formulated medium- and long-term plans aimed at achieving a steady and effective reduction of environmental impact, and by conducting relevant activities. These include formulating the Sony Environmental Vision, which clarifies the common goals for the Sony Group, and setting numerical targets for energy saving, resources saving, waste reduction and product recycling in our Mid-Term Environmental Action Program, Green Management 2005. We have also added environmental performance to the criteria for evaluating the performance of our Network Companies. These efforts earned Sony the 10th Global Environment Award Grand Prize, an award sponsored by the Nippon Kogyo Shimbun newspaper, in April 2001, an extremely gratifying event for the Sony Group. We intend to continue our environmental preservation efforts by implementing measures and developing technologies unique to Sony. We sincerely hope that this report will contribute to your understanding of the Sony Group’s endeavors and the course we have charted for the future.

June 2001

Nobuyuki Idei Chairman and Chief Executive Officer

4 A Message from Management

Corporate business activities today are exerting a greater impact on the global environment and society than ever before. Sony operates on a global scale. We are acutely aware of the fact that our business activities invariably impact the environment and society. During fiscal 2000, we formulated the Sony Environmental Vision looking toward 2010, and we followed its implementation with the establishment of our Mid-Term Environmental Action Program, Green Management 2005. Specifically, this plan requires Sony Corporation and Sony Group member companies operating throughout the world to raise eco-efficiency (a figure obtained by dividing sales by environmental impact) to a level twice its fiscal 2000 level by 2010. We will make every effort to achieve this target. The Law for Recycling Specified Kinds of Home Appliances, implemented in Japan in April 2001, extends its jurisdiction to televisions, our mainstay product. In Europe, home electric appliances and electronic products, including televisions and personal computers, are likely to become subject to recycling at the end of 2005. Laws governing recycling have been enacted in other Asian countries as well. We live in a time when companies must take responsibility for the products they manufacture and sell. Steady, persevering efforts to preserve the environment are essential, and Sony will focus on research and development in this area over the long term. There can be no prosperity for a company that does not consider the environment and society. Motivated by an understanding of Sony’s perspective on the environment, every member of the Sony Group will actively pursue efforts to preserve our environment. Just as humans have natural virtues, companies have corporate virtues. Bearing in mind that we will still be in operation 50 and 100 years from now, we will strive to ensure that Sony is a highly respected company. Each of our employees will advance step by step, striving continually to contribute to society in a manner that becomes Sony.

June 2001

Kunitake Ando President and Chief Operating Officer

5 Vision

Sony Environmental Vision Sony Environmental Vision Sony Environmental Vision – Sony’s Commitment

In October 2000, Sony introduced the Sony Environmental Vision. This Vision serves as a corporate guideline providing a basis for environmental management by the Sony Group worldwide. Sony’s Global Environmental Policy, established in March 1993, has been gradually integrated into the Sony Environmental Vision. The Vision is divided into four parts: A Vision Statement (see page 3) and Sony’s commitment, driving forces and goals/indices. Sony’s Mid-Term Environmental Action Program, Green Management 2005 has also been established as the foundation for the Vision (see page 16). As indicated on page 3, Sony’s commitment to sustainability encompasses four areas of particular concern, Sony strives to contribute in terms of environmental conservation throughout the life cycle, from planning to recycling. Sony’s commitment focuses on nine fields of action: Commitment

1. Corporate Citizenship 6. Distribution, Sales, Marketing and Individual Sony employees will enhance their After-sales Services knowledge of environmental issues and act Sony will take the initiatives to minimize environmental responsibly with respect to the people concerned, impact from the packaging, distribution, sales and the region and society as a whole. after-sales service of Sony’s products and services and to provide environmental product information to 2. Business Planning its customers. Sony will continually encourage the development of innovative business models to reduce 7. Post-use Resource Management environmental impact and move toward Sony will vigorously promote product take-back, environmentally sustainable growth. reuse and recycling and make efforts toward the reuse of the post-use resources within the Sony 3. Research and Development Group and in cooperation with Sony’s business Sony will make ongoing efforts to develop new and partners. original technologies that contribute to conservation of the environment. 8. Information Disclosure and Communication Sony will strive to disclose information to 4. Product Design stakeholders honestly, fairly, rapidly and continuously, Sony will aim to apply “cradle-to-cradle” design and to draw on opinions and suggestions from principles in all its products and services. Thus, Sony employees and other stakeholders for the continuous will strive to minimize environmental impact improvement of its environmental activities. throughout the product life cycle. 9. Risk Management System and Occupational 5. Manufacturing Process and Site Management Health and Safety Management Sony will continuously improve environmental Sony will apply rigorous risk management systems management systems at both manufacturing and worldwide and maintain communication concerning non-manufacturing sites. Sony will also promote the risks with the people concerned. Sony will also work move toward closed-loop/zero-landfill production. to ensure safe and healthy working environments for all employees.

*The above statements is a summary of the Commitment contained in the Sony Environmental Vision.

6 Sony Environmental Vision

Overview of the Sony Environmental Vision

Technology

Vision

Commitment Business Education Models Three Driving Forces

Three Driving Forces

Sony has established three driving forces to promote its vision and commitment. These three driving forces do not operate independently, but rather propel activities in concert with each other. Examples include the creation of new environmentally conscious business models that make optimum use of emerging environmental technologies. Meanwhile, Sony promotes these driving forces both inside Sony and in cooperation with its customers, business partners and various stakeholders. Sony considers supporting business partners by such means as promoting the establishment of environmental management systems and by disclosing environmental information on products as a form of environmental education in a broad sense.

Technology Education Business Models

Sony aims to help create a world in which Sony is committed, through continuous Sony will pursue business models and Sony technology and products contribute educational efforts, to incorporate all systems that reduce the environmental positively to reducing impact on the applicable environmental aspects into its impact on the Earth. When starting new global environment. Sony envisions a business process. To this end, all business initiatives, setting standards and world in which Sony’s products help employees are encouraged to take the criteria for doing business, or envisioning people everywhere enjoy a better life, initiative on their own initiative, thus new business models, Sony will aim for while doing more to ease the burden on translating awareness into action and these to contribute positively to the long- the natural environment. results. term sustainability of society. Furthermore, in order to create a sustainable lifestyle, Sony will do its utmost to share the expertise and know- how it has accumulated over the years with stakeholders outside Sony and the Sony Group as well as with Sony employees.

7 Vision

Eco-efficiency

Eco-efficiency can be viewed as “measurements” indicating the ratio of economic activities to its impact on the environment.

Sony Environmental Vision Sony aims to harmonize economy with ecology by treating these “measurements” as indices extending throughout all Sony’s activities and using them to grasp the flows of resources, energy, chemical substances and other elements throughout the life cycle. Sales Eco- = efficiency Environmental impact

(1) CO2 Index

Total CO2 emissions from Sony’s manufacturing process + CO2 emissions from product use - CO2 offset initiatives (compensatory action) This index not only includes CO2 emitted from Sony’s sites, but also the CO2 generated by Sony’s customers’ use of its products. Actions planned include reducing energy use in the manufacturing process, designing more energy-efficient products, introducing green energy sources and other initiatives to lower CO2 emissions.

(2) Resource Index

The Sony Resource Index is intended to minimize the amount of resources used in Sony’s Sony aims to raise production processes while simultaneously reducing the volume of non-recyclable waste. eco-efficiency with respect to To achieve this, Sony applies a Resource Input Index and a Resource Output Index. CO2 and resources by 1.5 times by fiscal 2005 and (2-1) Resource Input Index doubling it by fiscal 2010 as Gross material input - Recycled material - Renewable material compared with fiscal 2000. The Resource Input Index aims to reduce the volume of raw materials used in Sony’s production processes. Sony will continue to make its products smaller and lighter and will utilize a larger amount of recycled materials in them.

(2-2) Resource Output Index Waste from business sites + Total volume of products sold - Collected/recycled products The goal of the Resource Output Index is to minimize the amount of waste and non- recyclable materials. The index not only includes waste from Sony’s manufacturing processes, but also from post-use products and packaging and other materials. To achieve targets set by application of this index, Sony aims at a condition of zero-landfill and further miniaturization of products, along with the promotion of collection and recycling of post-use products. (3) Water Index

Water bought from water suppliers + Ground water used Sony will reduce the amount of water and ground water used in its production processes. By using rainwater and recycled water, Sony will reduce the amount of fresh water bought from water suppliers and ground water drawn.

(4) Hazardous Materials Index

Emissions into the air, water and soil + Waste transfer + Pollutants in products - Pollutants in collected products Sony will monitor and endeavor to decrease not only the flow of resources but also that of hazardous materials. Sony will adopt a comprehensive approach that encompasses the hazardous materials contained in products. To achieve the targets set by application of this index, Sony will reduce the amount of hazardous materials emitted from its production processes and contained in its products, and increase the collection and recycling of products.

Glossary Recycled materials: Materials recovered from used products collected for reuse. 8 Performance Evaluation System for Network Companies Performance Evaluation System for Network Companies

Fiscal 2000 evaluation of In December 1999, Sony added environmental measures to Network Companies the evaluation criteria for Network Companies to promote environmental management. The new system was implemented in fiscal 2000.

Environmental measures account for approximately 10% of the total evaluation criteria. EVA （Economic Value Added）� They consist of the following: Indices for measuring Four targets progress toward targets

1-year progress in 1) environmental performance of products Environmental 2) environmentally conscious Performance Index manufacturing processes ] Environmental measures � 1-year progress in 3) environmental technology � development Environmental Business plan target 4) environmental ] Management Index achievement ratio management, education, and information disclosure Quality� �

Research & Development

Intellectual property� � Evaluation was conducted in April 2001 in Sony Environmental Management Cycle accordance with the Scoring Manual for ■ Evaluation of Network Companies Based on Corporate Environmental Measures developed by Management Management Headquarters Corporate Environmental Affairs at Sony evaluation Headquarters, and the results were reported ISO14001 Sony Environmental Vision, Green Management 2005 to management, including top management. Plan (P) Evaluation Individual Network Evaluations are closely linked to the Sony Companies

Environmental Vision as well as to Green Act (A) Do (D) Breakdown of corporate goals Management 2005 and ISO14001 Compilation and promotion/control of implementation certification. All business units and divisions Check (C) are making intensive efforts toward achieving the goals for environmental impact Performance Implementation Individual sites/ and risk reduction set by Sony Headquarters results divisions based on the Environmental Management System. The performance evaluation system for the Network Companies has been Sony plans to broaden the environmental developed primarily to assess the results management base by extending the application of judiciously from a corporate management this Network Company system to the Group perspective and to maintain the momentum companies, starting with the games and of the Sony environmental management entertainment businesses. Plan, Do, Check, Act (PDCA) cycle.

Glossary Network Company: A business unit within Sony Corporation. 9 Vision

Environmental Management Mechanisms and Structure

Sony’s Environmental Organizations

The Sony Group’s global environmental activities are implemented Corporate Environmental Affairs serves as chairman of the by a network of environmental organizations and Regional committee comprising environmental directors from business Environmental Conservation Committees established within the operations and the chairmen of the Regional Environmental various business operations. The activities are overseen by the Conservation Committees. Each is charged with a mission.

Environmental Management Mechanisms and Structure Sony Environmental Conservation Committee, which has ultimate The Sony Environmental Conservation Committee met twice in responsibility for decisions on environmental measures fiscal 2000 (in May and November) to chart the course of implemented by the Sony Group worldwide. Supervising Officer for environmental management. Its actions included establishment of the Sony Environmental Vision and Green Management 2005.

Board of Directors

Group Executive Committee

Sony Environmental Conservation Committee Chairman: Sumio Sano, Corporate Executive Vice President

Corporate Environmental Affairs

Environmental Offices at Business Units Regional Environmental Conservation Committees (Regional ECCs)

Japan Environmental Americas Environmental Conservation Committee Conservation Committee Network Companies Sony Music Entertainment Sony Pictures Entertainment (Japan ECC) (Americas ECC) Europe Environmental Asia Environmental Conservation Committee Conservation Committee (Europe ECC) (Asia ECC) Sony Computer Group Companies China Environmental Entertainment Conservation Committee (China ECC)

Network Company Regional Environmental Environmental Affairs Conservation Committees

In accordance with Sony’s management policy stressing Assuming approaches by business units as the vertical connections, “integration and super-polarization”, Sony is strengthening the five Regional Environmental Conservation Committees are organized Headquarters’ environmental supervisory function with Corporate under the Sony Environmental Conservation Committee as the Environmental Affairs as its core. The business operations are horizontal connections to conduct activities closely involved with establishing independent environmental organizations to conduct their region — ensuring compliance with national laws and environmental activities responding to their unique business regulations, coping with market requirements, providing assistance characteristics and environmental concerns. and auditing operations. Network company environmental affairs functions were The regional committees convene two to four times a year. Each established in July 1999, especially by the Network Companies maintains its own office and staff, who conduct day-to-day activities comprising the core of Sony’s electronics business. These work in close liaison with closely with Corporate Environmental Affairs at Headquarters to Headquarters as well as disseminate Sony Headquarters’ environmental policies and the Network Companies instructions throughout the Network Companies. They also engage and operations in their in environmental activities suited to their particular business region. characteristics by establishing independent environmental In September 2000, initiatives and programs. Each Network Company appoints an the Chinese Environ- environmental director and promotes environmental management mental Conservation in cooperation with related operations. This system gives birth to Committee was environmentally conscious products. established, A conference conducted by the China independently from the Environmental Conservation Committee Japan Environmental Conservation Committee. Glossary Network Company: A business unit within Sony Corporation. 10 Environmental Management Mechanisms and Structure

Environmental Management System

Sony considers the environmental management system as a basic ■ A Comprehensive Approach to infrastructure for full participation in environmental efforts. Environmental Management Sony is pressing ahead with system implementation around the world through acquisition of ISO14001 certification. Most manufacturing operations are certified to the standard. Sony is also working towards ISO certification for non-manufacturing sites. To Various value-added tools further accelerate the Plan, Do, Check, Act (PDCA) cycle, Sony plans to reinforce the system globally with value-added tools such as environmental accounting, risk management and environmental Environmental Risk Environmental Others communications, transforming it into a comprehensive approach to accounting management communication the environmental management system designed to upgrade environmental performance continuously and efficiently. ISO14001 Environmental Management System

Japan Environmental Conservation Committee Manufacturing sites: 34/34 Non-manufacturing sites: 32/36

China Environmental Conservation Committee Manufacturing sites: 4/5 Non-manufacturing sites: 1/1

Americas Environmental Europe Conservation Committee Environmental Asia Environmental Manufacturing sites: 23/23 Conservation Conservation Committee Committee Non-manufacturing sites: 1/93 Manufacturing sites: 10/10 Manufacturing sites: 18/18 Non-manufacturing sites: 20/28 Non-manufacturing sites: 19/21

Worldwide Regional Environmental Conservation Committees and ISO14001 Certified Business Operations Manufacturing sites: 89/90 Japan Environmental Conservation Committee: Japan Non-manufacturing sites: 73/185 Europe Environmental Conservation Committee: Europe, Turkey, Mediterranean Africa, Russia and * Numerator denotes certified sites; neighboring countries denominator denotes all sites. * Both manufacturing and Americas Environmental Conservation Committee: North and South America non-manufacturing sites here mean those Asia Environmental Conservation Committee: Asia except Japan and China, Middle East, Africa except of a certain scale. countries on the Mediterranean coast and Oceania * The 92 non-manufacturing sites in North China Environmental Conservation Committee: China America are scheduled to be group- certified by August 2001. Glossary As of May 31, 2001 PDCA cycle (system): A Plan, Do, Check and Act management cycle based on ISO14001. 11 Vision

環 境 ビ ジ ョ ン の The Sony Group’s Material Balance 全

体s Material Balance 像’ and Environmental Accounting

Despite the growth of interest in environmental accounting in recent years, no unified global standards have yet been

and Environmental Accounting established.

The Sony Group Sony begins its environmental activities with efforts to clarify the overall environmental impact of its use of materials and energy throughout the life cycle, from the planning of products and services to the recycling and reuse of products. Sony then applies Sony’s business resources intensively to key problem areas in each stage of business to reduce environmental impact and risk. By Sony’s definition, environmental accounting encompasses a fully developed framework for understanding overall environmental impact and for quantifying the costs and effects of reduction efforts.

Overview of Sony’s Environmental Impact

Sony purchases large quantities of components and materials and Approximately 1.05 million tons of materials, a volume accounting turns them into products through manufacturing processes for about 80% of Sony’s total materials output are still delivered to employing energy, water and chemical substances. Combustion of customers in the form of products. Product recycling activities have fossil fuels for energy releases CO2, which may contribute to global recently begun in several countries. Sony wishes to help create an warming. Waste generated at sites and end-of-life products can also environmentally sustainable, recycling-oriented society by cause resources depletion or environmental pollution if improperly promoting recycling of products and, consequently, of materials, handled. Sony tries to acquire the most accurate quantitative overall materials conservation in new products and services, and active picture of its environmental impact possible, and to reduce it reuse of recycled materials. substantially. Other Environmental Impacts CO2 Emissions In addition to the above energy and materials, Sony employs water CO2 emissions resulting from the direct use of energy at Sony sites and various chemical substances in its business operations. In fiscal are estimated at some 1.7 million tons. Intent on reducing these 2000, Sony used some 29 million cubic meters of water and about emissions, Sony is pursuing a wide range of energy-saving activities 40,000 tons of chemical substances. Sony will continue to soften at its sites and working on switching to alternative fuels. When the the sites’ environmental impact by reducing the consumption and entire life cycle of a product is considered, however, the greater part promoting the recycling of these substances as well. of energy consumption results from the use of electric power by Apart from the energy and materials used by sites and in customers when operating Sony products. The CO2 generated over products that Sony can manage directly, Sony must also consider the whole lifetime of the products shipped during FY2000, for the environmental consequences of the manufacture and delivery of instance, is estimated at approximately 8.1 million tons. Sony is components and materials by suppliers. Sony hopes to lessen the responding with efforts to reduce product power consumption and environmental impact of these activities by promoting green minimize CO2 discharges through improved product design and the procurement and enhanced transportation efficiency. introduction of new types of products and services. At the same time, we have begun introducing renewable energy sources that do A breakdown of energy and materials use by product category not emit CO2 in the production process. shows that the environmental impact of the various product categories differs markedly from the proportion of total sales they Materials Consumption occupy. Sony undertakes this type of data analysis and applies the Waste from sites, which accounts for some19% of Sony’s materials results to achieve more efficient and substantial reductions in the output, totals some 250,000 tons. We are working to promote environmental impact of Sony’s business activities. recycling and minimize landfill disposal and reuse through zero landfill activities. The Sony Group’s recycling rate in fiscal 2000 was nearly 80% (global average). Thirty-five Sony sites around the world have already achieved zero-landfill (as of April 2001).

Glossary Recycled materials: Materials recovered from used products and collected for reuse. Zero-landfill (Sony’s definition): Approaching zero waste landfill disposal by reducing, reusing or recycling more than 95% of generated waste. 12 and Environmental Accounting The Sony Group ’ s Material Balance

■ Rough Estimate of the Sony Group’s Total Environmental Impact

Renewable energy, etc. Input Output

Energy consumption 1.7 million in manufacturing tons-CO2 (17%) � Carbon dioxide (9.8 million tons-CO2) Products/energy � 8.1 million Fossil fuel Total consumption in use tons-CO2 (83%) resources resources input Shipment as products � （81％）� Resources 1.05 million tons (1.3 million tons) Disposal Product Waste from sites recycling 0.25 million tons （19％）�

Recycled materials, etc. Recycling

*Energy consumption by products when in use, including standby energy consumption *The total volume of impact here is an approximate value partly including estimated/anticipated values.

■ Ratios of Environmental Impact to Sales by Business Segment

CO2 Emissions in energy Resources Sales consumption 1.3 million tons 7,314,824 million yen 9.8 million tons

Games 1%

Electronic components Music� and others 1% Music 5% Music Information and 10% TVs 4% 11% communications 8% Games 13% 1% Games 11% Electronic 10% Videos� components Videos� 9% TVs� Audio and others 17% 50% Electronic 13% TVs Information and components 75% communications 2% Audio and others 18% Audio� 15% 21% 5% Information and Videos communications

* Energy refers to energy consumed in manufacturing + energy consumed during a product’s lifetime. * Materials are total waste at sites + weight of shipped products. * Values of CO2 emission and materials were calculated from estimates, including assumed values. * CO2 emission conversion calculated based on Japanese conversion coefficient.

13 Vision s Material Balance ’ Environmental Accounting

Sony has established environmental accounting systems at sites environmental impact resulting from investment as compared with

and Environmental Accounting around the world to direct business resources efficiently and fiscal 1999. Environmental impact in this case refers not only to the effectively toward environmental conservation activities. Sony impact exerted directly by Sony’s business activities, but also to the The Sony Group recognizes the possibility of reconciling economic and ecological impact exerted by Sony products when they are in use (the “social concerns — of achieving ongoing growth while minimizing cost”). Sony’s original monetary conversion effect is also reported environmental impact — through the appropriate application of for reference purposes. environmental accounting. The compilation of total environmental conservation cost data has Applied in fiscal 2000 in an effort to grasp environmental been expanded to include the Americas and China, for which data conservation costs and effects throughout the life cycle, Sony were not previously compiled. environmental accounting has clarified the reduction in

Environmental Conservation Costs Environmental Classification Primary Measures Conservation Cost (Million yen)

•Energy and resources conservation of products 7,369 Environmental conservation cost for product design and product recycling •Recycling of container packaging, batteries, etc. 221 •Pollution prevention 5,006 •Reduction of environmental impact 5,842 Environmental conservation cost for manufacturing and service activities (Energy and resources conservation at sites)

•Green purchasing 48 •Environmental management Environmental conservation cost for management activities 4,028 •Risk management system Environmental conservation cost for social activities •Communications and contributions to society 228 Total 22,742

*In comparisons between fiscal years, the spheres of data subject to comparison are unified for the fiscal years being compared. *Environmental conservation costs include calculated expenditures. *The subject products are final products and do not include OEM supplies. *Values are approximations partly including assumed and anticipated values. *Eco-efficiency = Sales in fiscal year concerned/Environmental performance in fiscal year concerned *FY1999 (Adjusted computed value) = Environmental performance in FY1999 x Sales in FY2000 ÷ Sales in FY1999 *Sales are the total for electronics, games and music. *Yen amount conversion coefficient: Energy conservation = 14,000 yen/ton-CO2 Average value given by the Active Implemented Jointly (AIJ) Project conducted based on the United Nations Framework Convention on Climate Change. Resources conservation = 108 yen/kg Value computed from the cost of waste treatment and recycling. Improvement in Environmental Risk Assessment 1 point = 880,000 yen. Calculated based on environmental accidents occurring at Sony sites in the past. Reduction of hazardous materials 1,400 yen/kg. Computed employing Sony’s Guideline for Environmental Risk Management.

Glossary Green purchasing: Environmentally conscious purchasing of goods or service. 14 and Environmental Accounting The Sony Group ’ s Material Balance

Environmental Conservation Effect

Environmental Impact Environmental Conservation Effect Monetary Conversion Main of Environmental Eco-efficiency Conservation Effect Classification FY1999 Materials Environmental Conservation Effect item Effect (Comparison (Reference) (Adjusted computed value) FY2000 volume base with FY1999) (Million yen)

Energy conservation (8,323,450) (ton-CO2) 8,118,537 (ton-CO2) 204,913 (ton-C02)→ 1.03 2,869 Environmental conservation effect in (CO2 conversion of energy use and end of life product consumed in product use) Resource conservation (1,162,106) (ton) 1,076,862 (ton) 85,244 (ton)→ 1.08 9,206 (product weight) Energy conservation (1,731,192) (ton-CO2) 1,638,702 (ton-CO2) 92,490 (ton-CO2)→ 1.06 1,295 (CO2 conversion of energy consumed by sites) Resource conservation (65,732) (ton) 61,116 (ton) 4,616 (ton)→ 1.08 498 (quantity of waste from sites) (Thousand (Thousand (Thousand Environmental conservation effect in Reduction of water (31,245) 28,619 4,216 919 km3) km3) km3) manufacturing and service activities (volume of water consumption by sites) Reduction of environmental (624) (point) 296 (point) 328 (point) 289 risk at sites (Sony risk assessment score) Reduction of hazardous materials 73,064 (ton) 70,114 (ton) 2,950 (ton) 4,130 (Class III conversion) Total 19,206

Reduced Costs and Profits on Sales in (Million yen) Manufacturing and Service Activities Energy conservation-related 748 Resource (water) conservation-related 122 Resource (paper and others) conservation-related 183 Waste reduction 303 Profit on sale of securities 1,135 Others 43

In fiscal 2000, Sony invested approximately 22.7 billion yen in 1) Environmental accounting in product design: environmental conservation. Although the absolute volumes of Sony is analyzing some products to determine the extent to energy and materials consumed increased compared with fiscal which environmental impact was reduced and the equivalence 1999, Sony achieved the following improvements in eco-efficiency of the monetary effect resulting from expenditures on as a result: product energy conservation of about 3%; product environmental design. (See page 31.) resource conservation of about 8%; energy conservation at sites of 2) Environmental accounting in the risk management about 6% and resource conservation in sites of about 8%. system: Meanwhile, Sony’s performance in terms of water and chemical Sony is measuring the cost of risk management and its effect at substances usage reduction improved, and the environmental risk some sites by combining the environmental accounting method was reduced as well. with The Sony Guideline for Environmental Risk Management. In fiscal 2000, Sony employed estimated values and conversion coefficients to convert these environmental conservation effects to (See page 49.) yen amounts, arriving at a total effect (reference value) of 19.2 billion yen. Please see pages 54 and 55 for detailed numeric values. In addition to environmental accounting aimed at analyzing the entire flow of resource procurement and expenditure and analyzing it, Sony has begun using it effectively in-house as a management tool in various phases of business.

15 Vision

Sony Mid-Term Environmental Action Program “Green Management 2005” Green Management 2005

Sony developed the Green Management 2005 Mid-Term Environmental Action Program in March 2001 to attain the goals and eco-efficiency targets incorporated in the Sony Environmental Vision. This new action program supersedes its predecessor, Green Management 2002. It will be reviewed annually and when laws, regulations or social trends change.

Sony Mid-Term Environmental Action Program It comprises the 16 chapters below, each containing detailed, concrete goals for accomplishment by fiscal 2005. Sony endeavors to have every employee conduct business in accordance with the Environmental Management System and to try to achieve the targets.

1. Corporate Citizenship 2. New Business Planning 3. Research and Development 4. Procurement and Purchasing 5. Product Design 1) Environmental Requirements for Products 2) Specific Environmental Requirements 6. Site Management 1) Energy Conservation 2) Waste 3) Hazardous Materials 4) Water Resources 5) Paper Resources 6) Vehicle Fuels 7. Expanding and Revising Business Activities 8. Marketing and Logistics 9. Customer Services 10. Product Recycling 11. Risk Management System and Occupational Health and Safety Management 12. Environmental Education 13. Public Relations/Communications 14. Environmental Accounting 15. Data Collection 16. Information Systems

16 Green Management 2005 Sony Mid-Term Environmental Action Program

Environmental Indices

Green Management 2005 establishes numerical targets wherever possible to permit periodical progress evaluations. This section introduces the most significant numerical results. These indicators are of two primary types:

• Environmental performance indices • Environmental management indices

Environmental Performance Indices Targets: Items with a Direct Environmental Effect

Energy-related Items

Sites Reduce CO2 emissions per sales unit by 15% or more compared with FY2000 by FY2005 year-end. Carbon offset contribution Aim to increase the ratio of renewable resources to 5% or more of all energy consumed at each site (Renewable energy, etc.) by FY2005 year-end.

Site-owned vehicles Reduce CO2 emissions per sales unit by 20% or more compared with FY2000 by FY2005 year-end.

Logistics Reduce CO2 emissions per sales unit by 15% or more within the Sony Group compared with FY2001 by FY2005 year-end. Reduce power consumption by sites by 30% compared with FY2000 by FY2005 year-end. Products Reduce standby power consumption to less than 0.1 W by FY2005 year-end.

Resources Input Green purchasing Achieve a 100% Green Purchasing ratio for materials not for production purposes, such as office supplies, by FY2002 year-end. Reduce the amount of paper used by 20% per sales unit compared with FY2000 by FY2005 year-end. Paper Achieve 100% use of recycled paper. Reduce product weights or number of parts by 20% compared with FY2000 by FY2005 year-end. Products Increase ratio of recycled materials used in products to their weight by 20% compared with FY2000 by FY2005 year-end. Packaging materials Use environmentally conscious materials, such as recycled products, for all packaging by FY2005 year-end.

Resources Output Reduce total weight of waste generated at sites by 30% per sales unit compared with FY2000 by FY2005 year-end. Sites Realize zero-landfill by FY2005 year-end. Create a collection and recycling plan for major products by FY2005 year-end. Product recycling Conduct research on the recycling of plastic materials, and then introduce measures based on the research at treatment plants by FY2005 year-end.

Water Resources Sites Reduce the volume of water purchased or drawn from ground water at sites by 20% per sales unit compared with FY2000 by FY2005 year-end.

Hazardous Materials Class I substances: Prohibited Class II substances: Phase out by FY2005 year-end. Sites ＊ Class III substances: Reduce emissions by 90% or more compared with FY2000 by FY2010 year-end. Class IV substances: Use under strict supervision in full compliance with relevant laws and regulations. Products, service and marketing Employ lead-free solder in all products by FY2005 year-end. (Considered from different perspectives Eliminate vinyl chloride from all products by FY2005 year-end. to identify special circumstances Try to totally eliminate halogenated flame retardants by FY2005 year-end if substitute flame retardants confirmed to be safe are available. concerning safety standards, quality or Totally eliminate cadmium, chromium VI compounds, lead and mercury from all products by FY2005 year-end. market demand, etc.)

*See Class I to IV substances on page 57.

Environmental Management Indices Targets: Items with an Indirect Environmental Effect

Corporate citizenship Support regional environmental events once a year or more at each site. Risk management system Conduct evaluations based on the Guidelines annually at each site. Environmental education Provide environmental training course for all management staff by FY2002 year-end. Publish the environmental report (including site reports) annually for disclosure. Environmental communication Disclose Sony Group environmental performance information quarterly. Conduct environmental advertising at least once a year. Disclose environmental accounting information in site reports for every site by FY2003. Environmental accounting Incorporate environmental elements in decision-making on budget control of environmental activities and capital investment by FY2003.

Glossary Recycled materials: Materials recovered from used products collected for reuse. Zero-landfill (Sony’s definition): Approaching zero waste landfill disposal by reducing, reusing or recycling more than 95% of generated waste. Halogenated flame retardants: A chlorine or bromide additive that inhibits combustion of plastics. 17 Vision

“Green Management 2002” Mid-Term Environmental Action Program Progress Review Mid-Term Environmental ” These are progress reviews, conducted in each zone of Sony’s worldwide operations, concerning the primary targets set by the Sony Green Management 2002 Mid-Term Environmental Action Program. Sony monitors the progress of each Action Program Progress Review item/area/product and implements measures to improve those areas where sufficient results have not been achieved. Overall Progress Review See the section starting on page 53 for detailed reviews of each environmental performance category.

Green Management 2002 Environmental Performance Environmental Management “ Business processes With respect to environmental management systems, Sony will Despite the steady overall improvement in energy conservation, continue to accelerate the certification of non-manufacturing sites. Sony is aware of its failure to achieve its targets due to the startup Individual sites already practice risk management extensively, and of a CRT manufacturing plants in China and other parts of Asia, and information sharing among sites has increased. Environmental recognizes the continued need for efforts to improve performance. auditing will be implemented at non-manufacturing sites as well, and This will involve adopting energy-saving facilities at new sites and will be coordinated with occupational health and safety measures. applying the technologies deployed in progressive projects Work has advanced on guidelines for Green Procurement/ elsewhere. Purchasing. Sony will work with its business partners to reduce the Waste materials recorded an overall reduction, as 35 business environmental burden based on these standards. sites achieved zero-landfill as of the end of April 2001. Concerning In the area of plant siting, environmental audits were conducted potential hazardous materials, Sony unfortunately did not achieve its for the construction of a new plant by Sony Semiconductor Kyusyu goal of eliminating Class II substances by the end of fiscal 2000, as in Japan. they are still being used to some extent in Japan and other parts of Sony has promoted environmental communication with a wide Asia. Sony will continue working to eliminate their use as soon as range of stakeholders around the globe. Communication formats possible. Considerable reductions in the use of organic solvents, include this environmental report and individual site reports, an lead and other Class III substances were achieved during fiscal environmental homepage, publicity activities and advertising media. 2000. Sony Eco Plaza, an environmental showroom at Headquarters, has Water conservation efforts resulted in a 3% cut in water attracted more than 10,000 visitors to date. consumption worldwide compared to fiscal 1999. Ongoing efforts to Moves in the area of environmental education include use water resources with care will include rainwater use and water establishment of an environmental management seminar for recirculation. managers at Headquarters. Sony’s next step will be to expand these educational activities to provide training for general managers and Products higher-level management as well as personnel at domestic and In the area of energy conservation, targets for reductions in power overseas operations throughout the Sony Group. consumption by sites were met for representative models in each As concerns community relations, wide-ranging activities have product category. Sony is directing efforts toward further reduction been conducted by business operations in various locations. Many of standby power consumption as well. more, including activities focusing on environmental conservation, Efforts to conserve material resources focus on packaging as well will be carried out around the world in the future. as products. Notable in this respect, Sony has met reduction targets for polystyrene foam ahead of schedule. Efforts to improve recyclability begin with the product design stage. With respect to TVs, which fall under the jurisdiction of The Law for Recycling Specified Kinds of Home Appliances in Japan, Sony surpassed its recyclability rate target by a large margin, and Sony also made steady progress in shortening disassembly time. Sony is continuing efforts to improve performance from the design stage. As concerns hazardous materials that pose a potential threat to the environment, problems remain to be solved with respect to purchased components and electrical wiring in order to reduce PVC use. Although Sony has not yet met its Green Management 2002 targets for lead-free solder and halogenated flame retardants, it is continuing its efforts in this area in cooperation with its business partners.

18 Action Program Progress Review “ Green Management 2002 ” Mid-Term Environmental

Environmental Performance Indices This section reports progress in the reduction of environmental effects in terms of direct environmental effect.

Progress in Reducing Environmental Impact in Business Processes The situation concerning the reduction of the main types of environmental impact — energy, waste, chemical substances and paper — for each regional site is shown. Please refer to the data pages (after page 56) for detailed data. Although water was excluded from the targets for “Green Management 2002,” Sony has added target values for water to the new program, “Green Management 2005.” See page 56 for transitions in water use. Green Management 2002 Targets Progress Review Future Plans Energy Japan: Achieve 95% of the energy unit per Achieved 86% of the energy unit per sales sales by FY2002 as compared with FY1990. in FY2000 as compared with FY1990.

Americas: Reduce the energy unit per Reduced the energy unit per sales by 6% Reduce the volume of CO2 sales by 2% annually after 1998. in 13 sites reporting FY2000 data. emissions per unit sales by 15% or more by the end of FY2005 as compared with FY2000 through efficient energy use and the Europe: Reduce the energy unit per sales Reduced the energy unit per sales by 9% introduction of renewable by 20% by FY2002 as compared with FY1995. in FY2000 as compared with FY1995. Regional Targets energy.

Asia/China: Reduce the energy unit per sales by 15% by FY2002 as Increased the energy unit per sales by compared with FY1997. 23% in FY2000 as compared with FY1997.

Waste Reached the target of 75% waste Japan: Reduce waste (weight of landfill/sales) by 50% or more by reduction (weight of landfill/sales) FY2002 as compared with FY1997. in FY2000 as compared with FY1997. Continue promoting reuse Americas: Recycle 80% or more of generated waste by the and recycling. Reduce The recycling rate in FY2000 was 73%. end of FY2002. generated waste by 95% or more by the end of FY2005 and work toward zero-landfill Europe: Reduce waste (weight of landfill/sales) by 40% or more by Reached the target of waste reduction waste.

Regional Targets FY2002 as compared with FY1995. (weight of landfill/sales) in FY2000.

Asia/China: Reduce waste (weight of landfill/sales) by 40% or more Reduced waste by 1% (weight of by FY2002 as compared with FY1997. landfill/sales) as compared with FY1997.

Hazardous Materials Reduce the volumes of •Reduced the usage volume of VOCs by emissions and transfer of 48% per sales compared with FY1994. Sony-designated materials Reduced the usage volume of lead and •Reduce the usage volume of heavy metals such as VOC, lead and per unit sales by 50% or chromium VI compounds and other chromium VI compounds — Class III materials designated for reduction more by the end of FY2005 hazardous heavy metals by 58% per — per unit sales by 50% by FY2000 as compared with FY1993. as compared with FY2000 sales as compared with FY1994. •Totally eliminate use of Class II substances by FY2005. through conversion to •The volume of Class II substances used substitutes and was about 0.3 tons in FY2000. improvements in manufacturing processes.

Paper For Sony Group companies in Japan, the In some regions of the world, rate of recycled paper used was 95%, and there are no markets for the paper recycling rate was 94% in recycling paper or using •100% recycling of used paper by FY2000. FY2000. A comparison of 26 sites in Japan recycled paper in place. Sony •100% use of recycled paper by FY2000. for which FY1995 data were available promotes paper recycling •Reduce consumption of computer paper by 15% or more by FY2002 as showed that the amount of paper used and the use of recycled compared with FY1995. was reduced by 30%. Overseas Group paper to the greatest extent companies are promoting the use of possible after ascertaining recycled paper and paper recycling, but actual regional conditions. numerical data are not yet available.

19 Vision

Progress in Key Product Items for Environmental Consideration Sony strives to include environmental considerations in product design in order to reduce environmental impact throughout the life cycle, from manufacturing and sales to use and end of life. A progress review of environmental conservation with respect to the most advanced products as compared with the Green Management 2002 targets is shown below. Please also see page 60 for detailed data. Mid-Term Environmental ”

Action Program Progress Review Environmentally Green Management Conscious Items 2002 Targets Progress Review

FY2000 30-50% reduction Operating power FY2002 60% reduction The reduction rates were met, both for AC-powered models and for battery-powered models. consumption (compared with FY1990) Green Management 2002 “

TV standby power consumption was reduced to 0.1 W, but the reduction targets were not achieved Standby power FY1999 1 W or less for VCRs and DVD players because of the energy consumed by their timers. Sony is continuing consumption FY2000 0 W level

Energy conservation efforts to reduce standby power consumption.

Polystyrene foam buffer materials, excluding those used for large TVs and precision products, are gradually FY2000 50% reduction being replaced by paper materials. Polystyrene foam has been replaced by pulp-molds in 14-inch and 24-inch Polystyrene foam FY2002 60% reduction TV packaging. Based on an index calculated by dividing the cost of polystyrene foam purchasing by reduction (compared with FY1990) manufacturing volume in Japan, Sony succeeded in achieving a 60% reduction in FY1999 as compared with

Resources FY1990, thus reaching its goal before the target year. conservation As Sony progresses toward a recycle-oriented society, Sony is promoting design that takes FY2000 50% reduction recycling into consideration — by reducing the product disassembly time for TVs, for example. Reduction of products FY2002 60% reduction Sony achieved a 54% reduction in product disassembly time, a level somewhat below Sony’s disassembly time (compared with FY1990) target, as compared with FY1990 for TVs, which have now become subject to The Law for Recycling Specified Kinds of Home Appliances in Japan.

FY2000 50% increase Sony defines three materials — metals, glass and plastics with material identification — as Recyclability Recyclability rate FY2002 60% increase recyclable materials. Sony exceeded its target for TVs, achieving a 78% increase as compared with (compared with FY1992) FY1992.

FY2000 Use in all products and in the Sony has introduced lead-free solder in part or all-printed wiring board soldering processes, with Introduction of electrodes of all product the exception of some product categories. In the model DCR-TRV30 Handycam, especially, the lead-free solder components manufactured surface treatment of 86% of the electrodes of the components are also accomplished without the in Japan use of lead.

FY2000 Elimination from products Sony has reduced the use of PVC from almost all product components, particularly with respect to manufactured in Japan; reduce mechanical parts, but still uses it for cables and some mounted components. The process of elimination Reduction of PVC use by half in wiring materials is slowed in the case of cables by the difficulty of obtaining substitute materials that satisfy safety FY2002 Elimination from all products standards and quality requirements. Sony was the first in the industry to use PVC-free cables that satisfy

Reduction of worldwide quality standards for headphones and remote controllers for MD Walkman.

hazardous materials FY2000 Total elimination from all Reduction of Sony has substituted halogen-free flame retardants for halogenated flame retardants for cabinets products marketed in Europe halogenated flame and printed wiring boards in some models, but has not eliminated halogenated flame retardants FY2002 Total elimination from all retardants from all models sold in Europe. products marketed worldwide

20 Action Program Progress Review “ Green Management 2002

Environmental Management Indices This section reports progress in reducing indirect environmental impact and improving environmental management.

Green Management 2002 Targets Progress Review Future Plans ” Mid-Term Environmental Risk Management •Complete implementation of System equipment/countermeasures. Posted best practices from the Guideline for •Issue manuals coping with every type of Environmental Risk Management on an internal Conduct risk assessments based on the Guideline for emergency/training. homepage for sharing throughout the Environmental Risk Management and special audits. •Establish and maintain communication Sony Group. channels. ISO14001 certification The numbers of sites acquiring certification worldwide were 89/90 manufacturing sites and 73/185 non- manufacturing sites, for a total of 162/275. (The numerators are the numbers of sites acquiring Have each newly established site acquire Implementation of environmental certification and the denominators the total numbers of certification within two years after establishment and management systems at every site sites. The denominator numerals exclude sites that are promote acquisition of certification by non- exceeding a determined size by the end not eligible to become subject to certification acquisition, manufacturing sites that have been slow to achieve of FY2000. however, such as sites established within the past two acquisition. years. As concerns non-manufacturing sites in the United States, meanwhile, although 98 sites will acquire unified examination certification by July 2001, they are counted as one sites because they share a single certification.) Environmental audits Conduct environmental auditing by non- Environmental auditing conducted by In FY2000, 4 non-manufacturing sites in Japan, manufacturing sites in Japan that have not acquired regional environmental conservation 14 sites in the Americas, 14 sites in Europe and environmental ISO certification. Conduct committees. 6 sites in Asia conducted environmental auditing. environmental auditing, including health and safety, in the Americas, Europe and Asia. •Promote green purchasing Established Green Procurement Guideline and Sony Green procurement/ Conduct detailed research/provide guidance and •Conduct research/provide guidance and Green Partner Standards. Revised Green Purchasing purchasing support for environmental consideration among support for environmental consideration Guidelines. Conducted in-house education suppliers based on Sony Green Partner Standards. among suppliers. concerning green purchasing. Product recycling No recycling evaluation standards are in place, but product assessment have been held. Disassembly Plan and implement a recycling plan also for major Institute recycling evaluation standards time, recycling rate and recycling volume were products which are not subject to regulation by and adapt every product to them. evaluated under the recycling category in the recycling laws. company evaluation. Distribution •Work to limit emissions of air pollutants and •Directed efforts to improve efficiency through •Promote rationalization and efficiency of global warming gases by improving logistic transportation sharing and modal shift. transportation. efficiency and promoting modal shifting. •Implemented efforts to reuse and recycle •Promote reduction of the volume of gasoline •Reduce the use of packaging materials in packaging materials used in transportation. In consumed, employ low-emission vehicles for transportation, promote the use of recycled Japan, switched vinyl chloride films employed in product transportation and pursue modal shift materials and develop substitute materials. transportation to polyethylene films and recycled efforts further. •Promote use of low-emission vehicles. nearly 100% of used films. Work to reduce environmental impact by Plant location Sony Semiconductor Kyusyu Co. conducted conducting environmental aspect assessment Conduct environmental assessment for drastic environmental audits when constructing Kumamoto for plant location, overseas business business changes after startup of new sites. Technology Center. expansion and business changes. Environmental •Issued Sony Group Environmental Report in both communication Japanese and English and distributed it widely, and issued site reports for 48 sites and disclosed them to the •Continue disclosing information to stakeholders •Disclose information as part of various regional communities. through media such as the Environmental Report, corporate accountability to stakeholders. •Disseminated the latest information on environmental site reports, homepage and press releases. •Disseminate the latest environmental activities both inside and outside the company through •Disclose information on environmental performance information among all employees. press releases, the homepage, etc. periodically through publicity, advertising, and •Disseminated the latest information concerning the others. environment among employees in every region through Sony internal homepage and newsletters. •Encourage all employees to participate Environmental Disseminated environmental information among all in environmental conservation activities Strengthen environmental education for employees, education Sony Group employees through the internal home- on their own volition in every aspect of mainly through the internal homepage and extend page and newsletters, etc. and regularly office, community and home. the management training program aimed at implemented various environmental training •Introduce environmental education in managers to higher management levels. sessions and lectures. employee training/awareness programs. Environmental Construct an environmental accounting Instituted environmental accounting guidelines for •Comprehensively improve the accuracy of the sums and accounting system that supports calculation of Sony as a whole and constructed an environmental information on environmental accounting for products effects relative to costs by achieving an accounting system. and operations. appropriate grasp of environmental costs, This report sums up the environmental accounting •Work to establish effectual environmental accounting to and disclose information on information for every site, including product support management through more precise cost environmental costs as necessary. information. (Data for some sites are not included). effectiveness measurement. Conducted community activities to preserve the Community relations •Contribute to conservation of regional environment, such as nature preservation and Continue the “SOMEONE NEEDS YOU Project” activities community environments as a good regional cleaning, adapted to the various regional introduced in FY2000, and activate regional activities corporate citizenship. characteristics at every site worldwide as part of the by each site, such as sharing information about •Support employees’ self-motivated community activities in the Sony Group’s ”SOMEONE successful cases among Group members. environmental conservation activities. NEEDS YOU Project,” etc.

21 Action

Green Procurement and Purchasing

While quality, cost, delivery and service are obviously essential, Sony has added environmental quality considerations to Sony’s procurement system. The key to the program is the Sony Green Procurement Guideline. The guideline has two main contents: a request for Sony’s business partners to implement environmental management and the green procurement of goods and services. Sony has also set up an e-procurement management system for Sony’s wide-ranging operations to increase efficiency and to reduce resource consumption.

■ Sony’s Green Procurement Concept Green Procurement of

Environmental management Goods and Services by business partners Production materials Sony’s green procurement activities cover every aspect, from raw materials and components to office supplies, energy supply and Green procurement Non-production materials construction work. They also extend to the outsourcing of services. at Sony (green purchasing) (Please refer to page 36.)

Green procurement Energy of goods and services Materials and Components Services, etc. The EDIS-P (Environmental Data Information’s System-Parts) database is a vital resource in this initiative. With contents of 56 Green Procurement and Purchasing Environmental Management chemical substances — known as Sony Specified Substances in Materials and Parts — it covers hundreds of thousands of by Business Partners suppliers’ components. By delivering instantaneous calculations of The Sony Green Partner Standards the amount of a specified substance, the system makes an call for Sony’s suppliers and vendors important contribution to reducing hazardous materials. to achieve a number of demanding goals. • To develop an environmental management system ■ EDIS-P scheme • To develop an environmental risk management system Environmental parts information Environmental • To practice green procurement in Business Calculation impact their own operations partners reduction plan • To make public disclosures detailing Environmental the environmental impact of their Sony Green Partner Standards EDIS-P system information disclosure products and operations Volume of parts chemical substances To support this effort, Sony has also set up an environmental content issues research page on the Sony Web site for the Sony Volume of Procurement Integrated & Rationalized Internet Trading System chemical substances Product parts structure information content (SPIRITS) e-procurement system. Besides heightening awareness of environmental issues, SPIRITS encourages interchanges between suppliers and Sony.

■ Sony Specified Substances in Materials and Parts (A) Heavy metals (B) Halogenated flame retardants Ethylenimine Ethylene oxide Antimony and its compounds PBB and PBDE Methylcyclohexanol Phenol Arsenic and its compounds Tris (2,3-dibromopropyl) phosphate 4-nitro biphenyl Propylene Beryllium and its compounds Other halogenated flame retardants Nitrosamines Propylene oxide Cadmium and its compounds (C) Other halogenated substances Phthalate Styrene monomer Cobalt and its compounds PCB Thiuram Tolylenediisocyanate Hexavalent chromium compounds Polychlorinated naphthalene (E) Dyes Vinyl chloride monomer Lead and its compounds Polychlorinated terphenyls Auramine (G) Others Manganese and its compounds Chlorobenzenes Benzidine-based dyes Formaldehyde Mercury and its compounds Hexachlorobutadiene p-dimethylaminoazobenzene Coal-tar and coal-tar pitches Nickel compounds Methyl chloride Fuchsine Asbestos Organotin compounds 3,3’-dichloro-4,4’- (F) Residual monomers Erionite Selenium and its compounds diaminodiphenylmethane Acrylamide Talc (containing fiber-like asbestos) Tellurium and its compounds PVC and PVC blends Acrylonitrile Organic solvents with high boiling point Thallium and its compounds (D) Additives 1,1-dichloroethylene Zinc compounds n-butyraldehyde Epichlorohydrin Dioctyl adipate Ethylene

Glossary SPIRITS: A system employing an Internet platform to provide business partners with information concerning materials quickly. Green purchasing: Environmentally conscious purchasing of goods or services. 22 • As a user of large quantities of plastic materials and galvanized PVC Substitutes steel sheets, Sony conducts preferential collective procurement of PVCs have been eliminated from Sony’s selection of corporate recycled materials and steel sheets without chrome VI content. goods, including pocket diaries, ID card holders and umbrellas. • With the introduction of lead-free solder, Sony has initiated parts Limonene-recycled pen procurement adapted to the Sony Technology Standard, which Giving another life to polystyrene foam packing, Sony has presents the standard for lead-free solder. developed an innovative recycling technology that turns the foam Green Procurement and Purchasing • With respect to parts packaging, Sony has encouraged its into polystyrene pellets that are employed to manufacture ballpoint business partners to employ environmentally conscious packaging pens for in-house use. (See page 39). which does not use PVC, etc. • Sony has established an environmental information page on MEET’s, the specialized homepage for Sony business partners, and has prepared systems to enable designers to acquire information on environmentally conscious materials easily and to receive business partners’ proposals for new environmentally conscious materials and parts. Pens made from Green Procurement limonene-recycled plastics Sony regularly organizes exhibits of environmentally conscious Sony’s Green Purchasing Guideline has added another level to products and employee workshops on green purchasing. Updates Sony’s environmental program. Going beyond purchasing of on environmental issues are featured in the internal newspaper materials and components, it sets standards for office and other Sony Times and ECOLOGY newsletters and “Scope” in-house supplies. A number of other original ideas have also helped to news videos as well as Sony’s intranet homepage. round out this comprehensive effort. SMAPS Purchasing Information System Sony’s SMAPS (Sony Master of Arts Procurement System) Green Energy procurement information system automatically calculates the ratio of an office’s green purchasing. To attract employee attention, an Sony has taken the initiative to utilize electricity generated by wind Eco-mark is used to highlight environmentally conscious office power. Working with Tokyo Electric Power Company, and other supplies. public utilities, Sony has played a key role in developing the Green Green Envelopes Power Certification System provided by Japan Natural Energy Developed in cooperation with leading paper and ink producers, Company Limited. Green Envelopes are used by Sony Corporation and the Group Sony plans call for annual purchases of 3.3 million kWh of companies. The Green Envelopes are made from non-deinked, electricity from the Choshi-Byobugaura Wind Power Station in unbleached, uncolored 100% recycled magazine paper, which has Chiba Prefecture when it goes into operation in August 2001. An a low recycling ratio, and employ a vegetable oil based ink that is additional 1.2 million kWh will be purchased from the Noshiro Wind free from volatile organic compounds (VOCs). (This report uses Power Station in Akita Prefecture after it begins operations in recycled magazine paper from pages 53 to 68.) The technology has December 2001. also been applied to make 100% recycled cardboard and heavy paper for packaging. (See the application of product packaging materials on page 30.)

A conceptual drawing of the Choshi-Byobugaura Wind Power Station (Japan)

Green Envelopes used by Sony Group companies

Glossary MEET'S: A homepage that provides design and materials departments with information on new materials and new processing technologies. PVC (poly vinyl chloride): A class of general-purpose plastics that may release toxic gases during combustion. Lead-free solder: Solder with no lead content. Conventional solder employs lead, which may exert an impact on the environment. Limonene: A vegetable oil extracted from the peels of oranges or other citrus fruits that finds use as an aroma additive in foods and cosmetics. 23 Action

Energy Conservation

All business operations affect the environment of the earth. CO2 emissions from energy consumption are a particularly pressing concern, since they are recognized as a cause of global warming and other environmental problems. Sony Environmental Vision Towards Sustainability aims to improve eco-efficiency regarding CO2 emissions by a factor of 1.5 by fiscal 2005 and a factor of 2 by fiscal 2010 (fiscal 2000 baseline). Sony is pursuing energy conservation from various perspectives in order to accomplish these goals. Sony is energetically promoting the introduction of renewable energy sources such as wind power, for example, which do not emit CO2.

Highly Efficient Boiler System Co-generation System

To reduce the environmental impact of its operations, Sendai Faced with fluctuating demand for electricity, Sony EMCS, Kohda Technology Center (Japan) has replaced its former boilers with a TEC (Japan) chose a natural-gas co-generation system as its highly efficient boiler system featuring multiple small single-pass principal energy source. This system supplies hot water heated with boiler processing. Using natural gas exhaust heat to the plant. It has contributed to the reduction of CO2 instead of heavy oil, this system affords emissions by improving energy efficiency. substantial reductions in SOX emissions Energy Conservation and energy consumption.

Sendai Technology Center’s multiple small single-pass boiler system (Japan) Ice Thermal Energy Storage Energy-saving Cooling System

With electric power demand generally concentrated in the daytime, Sony Precision Engineering Center (Singapore) installed electronic it is abundantly available at night. Ice thermal storage systems take and automatic controller systems to improve the efficiency of its air advantage of the surplus nighttime power to make ice for use as a handling unit (AHU) motors and chilled water system, respectively. source of energy for heating and cooling, thus cutting electric Installed in AHUs with a high motor rating, the electronic controllers power consumption during the day. helped to enhance motor efficiency. The introduction of this system Sony Semiconductor Kyusyu enabled the chiller to conserve energy by operating with two rather Kokubu Technology Center, than three units during manual operation. employs this system to save approximately 390 kiloliters of crude oil-equivalent energy a year. Ice thermal energy storage tanks at Sony Semiconductor Kyusyu Co. Kokubu Technology Center (Japan) Rooftop Planting Solar Power Generation Sony is experimenting with covering the rooftops of its office When constructing its No. 3 Site in Kanuma, Sony Chemical buildings with greenery. Rooftop greenification promises some Corporation introduced a solar power generation system on its relief from the warming accompanying the greenhouse effect. rooftop. The system’s lifetime of over 30 Covering rooftops with greenery is also expected to conserve years will help the site to secure a long- energy, improve rooftop water resistance and retain water in times term supply of clean energy. During of heavy rain. While beginning by establishing a green zone on the February 2000, its first month of full- rooftop of the Sony Corporation HQ Building 2 and measuring the scale operation, it generated 7,120 kWh effects, Sony is gradually planning to introduce it onto other of electric power, or 8% of the electric A solar power generation system buildings. power used in the plant. on the rooftop of Sony Chemical Corporation No. 3 Site in Kanuma (Japan) Efficient Use of Clean Rooms

To cut electricity consumption, Sony Computer Entertainment Inc. Fab1 plant (Japan) has introduced smaller clean rooms that alleviate the need for ultra-clean ventilation circulation in other areas. This has clear advantages over conventional facilities, whose larger dimensions require the ventilation system to draw substantially more energy.

A section of the Sony Corporation HQ Building 2 roof planted with greenery (Japan)

Glossary Co-generation system: A system for both self-generation of electric power and efficient use of the heat created in the power generation process for heating water and air. Multiple small single- pass boiler processing: A system that determines steam demand by detecting the pressure changes in steam generated from more than one installed boiler and selecting the most suitable number 24 of boilers for operation. Resource Conservation and Waste Management

Sony strives to use or reuse earth’s limited resources efficiently. Sony also focuses on minimizing the amount of waste generated by its operations and disposed of without being reused. These efforts toward efficient use of resources and waste management encompass not only Sony’s production processes but its products and packaging as well. Sony is also working to reduce waste by cutting the waste sent to landfill to zero, minimizing product sizes and weights, and collecting and recycling used products.

Water Conservation Reuse of Waste Magnetic Tapes Resource Conservation and Waste Management Large quantities of water are required for manufacturing Some of the waste tapes that the Sendai Technology Center semiconductors at the Sony Semiconductor Kyusyu Kokubu (Japan) has utilized as fuel for solid combustion boilers in the past Technology Center (Japan). Since groundwater is the major water have been material-recycled in the form of “PET stone” since fiscal source at Kokubu Technology Center, securing water is an 1998. Tapes collected from disassembled cassettes and waste cut important concern for the company as well as for the local tapes are finding new applications as energy-saving construction community. To ease demand requirements, Kokubu Technology materials in the company’s facility construction or as core materials Center has made strenuous efforts to recycle purified water and in “tatami” mats. minimize loss during treatment. The program has been so successful that the plant’s annual water consumption has been halved from 216 tons per square meter of wafer area in fiscal 1995 to 106 tons in fiscal 2000.

■ Water volume demand trends (Sony Semiconductor Kyusyu Kokubu Technology Center) (Unit: 1,000 tons/yr) (Unit: tons/m2) PET stone made from Combination concrete molds/ recycled disks heat-insulating materials * Volume of water drawn 6,000 per 1 m2 wafer unit 250 212 219 216 5,000 Volume of water drawn daily 200 170 4,000 148 151 120 3,458 3,377 106 150 3,202 3,021 3,000 2,958 3,029 2,854 2,813 Compact Disc Recycling (Holland) 100 2,000

1,000 50 Sony Music Entertainment’s compact disc manufacturing sites in the Netherlands recycle various packaging materials and 0 0 93 94 95 96 97 98 99 00 (FY) polycarbonate CDs. The polycarbonate recovered from over three million CDs, or 3% of annual production, is used in molded computer casing production and other applications.

Cathode Ray Tubes Recycling

Water treatment equipment at The Sony Manufacturing Company UK, Bridgend Plant in Wales, Sony Semiconductor Kyusyu Co. which produces approximately three million cathode ray tubes Kokubu Technology Center (Japan) (CRTs) a year, implemented an energy campaign in fiscal 1999 that focused on energy reduction to improve its environmental Waste Control performance. The project has achieved a 16.8% reduction in energy consumption per kilogram of production since fiscal 1998. Originally designated as a pilot plant for reduction and recycling Similar success has been achieved by a glass recycling program more than 95% of waste, Sony EMCS, Kisarazu TEC (Japan) is promoted at Bridgend plant since fiscal 1998 to deal with lead- continuously endeavoring to attain new targets in these areas. The containing CRT production waste. The program is conducted in plant assigns waste to 76 classifications for easy recycling, cooperation with a glass recycling provides indications in three languages and adds easily understood firm, and the glass recovered from color photos. The plant reduced, reused or recycled more than the plant is reused as a raw material 99% of the waste generated as of March 2001. Sony EMCS Kohda for glass products after cleaning. TEC, meanwhile, has succeeded in reducing, reusing or recycling Approximately 80% of the plant’s 97.5% of its waste, by implementing measures such as recycling monthly waste glass is now recycled. of waste stretch film, drying sludge from the sewage system and concentrating oil-mixed wastewater. Sony Manufacturing Company UK, Bridgend Plant

Glossary PET stone: Stone-like material made from melted and hardened resin. Certified with the prefectural Eco-mark, PET stones are used as substitutes for natural stones in railroad pavement, civil engineering and construction. There is also high demand for tape waste for use as fuel. 25 Action

Chemical Substances Management

Sony is committed to seeking alternatives to chemical substances which may have an impact on the environment and to reducing their use steadily. Sony has been working to minimize the use of chemical substances from the initial stages of product design and procurement. Sony has also developed a management system for chemical substances that classifies hazardous materials according to four levels — Class I substances (Prohibited), Class II substances (Phase out), Class III substances (Reduction) and Class IV substances (Control) — and established management targets for them, thereby taking every precaution in their management. Efforts at Chemical Substances Management Sony has monitored and managed the amounts of potentially Sony Shiroishi Semiconductor Inc. environmentally hazardous chemical substances employed in its production sites in Japan since fiscal 1993, and has disclosed data Production of compound-semiconductors generates gallium and on the amounts of these chemical substances Sony consumed arsenic wastewater. Sony Shiroishi Semiconductor (Japan) has globally since fiscal 1995. introduced a process of neutralizing gallium arsenide wastewater, In 1998, the Japan Federation of Economic Organizations drastically cutting the proportion of gallium and arsenic in drainage. initiated PRTR (Pollutant Release and Transfer Register) surveys In the case of arsenide, for example, the plant has implemented a starting with fiscal 1997. Sony has conducted surveys since then in system to monitor the arsenic content with automatic analysis accordance with the methods prescribed by the PRTR Guidelines meters that can measure it down to extremely small quantities. The in Japan. Because some of the survey items overlap its own survey, plant’s treatment measures have succeeded in maintaining the Chemical Substances Management Sony has integrated the two survey methods in its chemical content at levels equivalent to the standard for drinking water substance survey and management activities. supplied by water utilities. In most countries in Asia, Sony has moved at the corporate level to require its sites in the region to establish PRTR systems, even though there is no legislation requiring compliance with PRTR. In Singapore, Sony has led the way in compliance: two Sony Sony Display Device (Singapore) companies in Singapore sites completed system implementation in fiscal 1999, and PRTR training has also been conducted at some Sony Display Device (SDS) is stressing a hazardous materials other sites in Asia. Sony has established fiscal 2002 as the target usage reduction program focusing on cutting use of Class III year for full PRTR implementation in Asia. substances (page 57). Having totally eliminated the use of isopropyl Sony aims to achieve drastic reductions in both the volume alcohol over the past two years, SDS is currently working to released into the air, water and soil and the volume transferred as achieve further reduction in the use of such solvents as acetone waste and to increase the recycling volume. and methanol.

Sony EMCS, Minokamo TEC Sony Electronics of Korea

Sony EMCS Minokamo TEC, a pilot plant for hazardous materials Sony Electronics of Korea has worked to minimize its use of reduction, has made every effort to reduce the use of chemical hazardous materials by monitoring their use on a monthly basis and substances as VOCs in the assembly process. Ethanol-based reviewing its production processes. It has also conducted various substitutes has been found and used to replace over 95% of the other activities, including gathering information on substitute VOCs as of the end of fiscal 2000 as compared with fiscal 1997. materials and conducting regular training concerning Sony is currently examining how these technologies can be hazardous materials. Through such activities, it succeeded in extended to other sites. reducing hazardous materials by 67.6% in fiscal 1999 as compared with fiscal 1994.

PRTR training at Sony Electronics of Korea Corporation

Glossary PRTR: Pollutant Release and Transfer Register 26 Facility Design and Construction

Sony’s environmental commitment goes beyond products and services. Sony also brings a keen sense of responsibility to the planning and construction of plants, offices and other facilities essential to its operations. Before breaking ground for some of its latest production facilities, for example, Sony began with a comprehensive evaluation and analysis based on Life-Cycle Assessment (LCA). These efforts also encompass renewable energy sources such as solar power.

Fab2 (Semiconductor Plant,

Sony Computer Entertainment Inc.) Facility Design and Construction To make effective use of its construction materials, Sony reused soil, metal scraps, wood scraps, cardboard and temporary-use Sony Computer Entertainment Inc. (SCEI) completed construction materials that were generated on the site during construction to the of its new Fab2 plant in March 2001 on the same site as its Fab1 fullest extent possible. Sony conserved energy in the production plant in Isahaya, Nagasaki Prefecture (Japan), with the aims of process by introducing an ice thermal storage system that employs reinforcing supply of semiconductors and of creating the world’s electric power generated at night and by introducing more efficient most efficient semiconductor plant. machines and tools. Sony intends to achieve an industry-leading Because the plant is constructed in the rich natural environment recycling ratio through complete separation of drainage to conserve of Isahaya, which is surrounded by sea on three sides, Sony has the water environment. considered the environment at every stage, from the initial planning to the eventual demolition of the buildings, in cooperation with Sony’s business partners. The environmental impact has been thoroughly assessed, and simulated assessment and analysis have Environmental Considerations for Kumamoto Technology Center been conducted by Life-Cycle Assessment (LCA). With respect to Harmony with global and local environment risk management, Sony placed an especially high priority on wastewater management in the construction and directed efforts Value added to production Comfortable work toward preventing environmental accidents. At the same time, environment some 80% of the construction waste generated was recycled. Harmonious coexistence Legal compliance /Independent with local community standards/Next-generation orientation The new measures that are designated as a model Sony Group project include evaluating environmental impact of the facility’s life CO2 emissions reduction cycle, based on the volume of CO2 emmissions, and Installing LNG boilers Recycling Reduction of Water comprehensively evaluating and analyzing the environmental Complete separation of waste water Reduced cooling tower water supply Recycling/reuse of waste water Drainage recycling impact of construction. In the future, Sony will apply the results of this project in managing the construction of plants and other Energy conservation Energy control equipment installation Community greenification facilities. Energy conservation Tree planting on premises equipment introduction

Pollution prevention Control/monitoring Solar power measure implementation Solar power entrance lighting Prevention of outflows from machines

Sony’s New European Headquarters

In October, 2000, the Japanese newspaper Nikkei Business Daily honored the Sony Center Am Potsdamer Platz (Germany) for its Excellence in Advanced Business Facilities Award. The award SCEI’s Fab1 and Fab2 semiconductor plants (Japan) recognizes office complexes that combine energy efficiency with environmentally conscious planning. The design of the Sony Center makes optimum use of natural light and rainwater to conserve resources. The carpets and furniture Kumamoto Technology Center have been chosen with future recycling in mind, Sony Semiconductor Kyusyu (Japan) has not only introduced the and the handling of toner most advanced semiconductor manufacturing processes at its cartridges and other Kumamoto Technology Center, currently under construction, but it waste follows Germany’s has also conducted environmental audits concerning the actual strict recycling regulations. conditions involved in the construction. Committed to achieving coexistence and harmony with the community, Sony is examining creation of a community-based energy conservation system by introducing natural energy sources such as solar power and by using natural gas supplied by the community. Sony Center am Potsdamer Platz (Germany)

Glossary Fab1, Fab2: Sony Computer Entertainment plants in Nagasaki, named for “fabrication”. LCA (Life-Cycle Assessment): An assessment technique that adds up the environmental impact of a product or service at every stage, from raw materials mining to disposal or recycling, and evaluates it quantitatively and objectively to the greatest extent possible. 27 Action

Product Planning and Design

Sony’s comprehensive approach to environmentally conscious operations begins with product assessment during product planning and design. This far-reaching measurement lays the foundation for reducing environmental impact throughout a product’s life-cycle, from Sony’s components procurement, production, product use, end of life and recycling.

Sony’s Environmental Commitment with Respect to Products

Since the launch in fiscal 1994 of Sony’s Greenplus project, a became easy to set concrete numerical targets and reduce comprehensive corporate activity stressing consideration of the environmental impact in a logical manner. environment from the design stage, Sony has promoted Sony’s broadcasting equipment operations offer a telling environmentally conscious product development. This commitment example of the results. During a year and a half of product has strengthened steadily in the years since, and today it is assessment, their environmental impact was reduced by 30% on summed up in Sony’s Guideline for Environmentally Conscious average. The Japan Audit and Certification Organization for Products. Introduced in fiscal 2000, this guideline has been Environment and Quality (JACO) has evaluated this highly as the adopted by Sony Group companies worldwide. The contents of first approach to the evaluation of the environmental impact of Sony’s environmentally conscious product design are described products. A patent application has been made for the evaluation of

Product Planning and Design and disclosed both internally and externally based on the the environmental impact of products. Guidelines. Sony will take the system to the next level by applying Life-Cycle Contents of the Guidelines Assessment (LCA) to calculate the environmental impact in terms of • Environmentally conscious products volume of CO2 emissions. A trial LCA will be launched in fiscal 2001 Sony’s environmentally conscious products are defined. and later refined to establish a clear basis for detailed Type III Eco- •Benchmark with competitors’ models labels as prescribed by ISO. The target benchmarks have focused Sony’s efforts to lead the industry, even as it competes with itself. ■ ISO14001/Product Assessment • Disclosure Policies and methods are outlined for the disclosure of Grasping and reducing the environmental impact of products product information. • Product assessment Product environmental Product assessment is Customers’ demand coordinated with the Mid-Term aspects assessment Environmental Action Program Clearly defining environmental “Green Management 2005.” targets for products Design concept /procedures Product assessment check sheet Sony Guideline for Environmentally Online confirmation sheet Conscious Products Continuous Start of improvement product P planning ConcrConcreteete planning Performance progress review Product Assessment P Individual D Since much of a product’s environmental impact stems from its Review of the overall system Review product Implementation assessment planning and design, Sony conducts an environmental assessment A at this early stage. A D This awareness has prompted Sony to consider the pursuit of smaller, lighter products — a hallmark of the Sony brand — as an VVerificationerification Verification environmental initiative. In 1991, Sony launched a full-scale product C assessment program that included environmental factors in its Overall environmental quality judgment overall definition of product quality, reflecting Sony’s belief that C Online judgment product quality is inseparable from the environment. Sony’s design Deming’s management cycle Shipping judgment process manuals were expanded with the addition of a Product Assessment Check Sheet to clarify environmental aspects and set goals for every item. During Sony’s preparations for ISO14001 certification, Sony began evaluating its products’ environmental impact in conjunction with the environmental management system. As a result, the items involved in products’ environmental impact were clarified, and it

Glossary PDCA cycle system: A Plan, Do, Check and Act management cycle based on ISO14001. Japan Audit and Certification Organization for Environmental Quality (JACO): An evaluation and certification body for the ISO14001/9000 series and OHSMS. Eco-label: There are three types of labels, assigned according to a variety of approvals and contents prescribed by ISO. Deming`s management cycle: A method of meeting targets in which the outcome of efforts is constantly assessed to determine whether an action was 28 correct. When something has gone wrong, modifying action is taken. This cycle is called PDCA in areas concerning the environment. Benchmark: A measurement standard/index usually investigated and set through comparisons with competitors’ products. Focusing on power consumption during operation, Sony lowered ■ Product Assessment is upstream management of annual power consumption to 120 kWh in the model KV-24DA1 product design wide-format stereo TV (see page 32) launched in fiscal 2000. This success was achieved by adopting a rectangular cone deflection 90% of environmental impact is determined at the yoke, a remote control-activated image brightness suppression point of product planning and design function and an “energy-saving” button that cuts power to the tuner circuit during video viewing. In Japan, Sony is making strong efforts toward installing rectangular cone deflection yokes in other models Product assessment with the aim of bringing all its TVs into conformity with the

standards stipulated by Revised Japanese Law Concerning the Product Planning and Design Energy conservation/ Product Resources conservation/ Rational Use of Energy. R&D Design Reduction of planning hazardous material

Raw material Environmentally Conscious Packaging RecyclingRecycling procurement/procurement/ & Reuse Manufacturing Resources Packaging becomes waste material as soon as a product has been delivered to the customer. Sony’s product planning and distribution Energy Energy Energy divisions are working to reduce this waste and to make more efficient use of resources by improving packaging materials and Solid waste developing new ones. Their efforts are focused on the following End of Distribution/ Liquid waste “four Rs”: Reduction, Reuse, Recycling and Replacement of product life Users sales Air emissions Vibration/noise materials — with environmentally conscious materials for which recycling infrastructure already exists selected for the replacement process. Sony is pursuing active development and improvement Waste CO2 Exhaust gas efforts with the cooperation of the design and distribution divisions from a Four R perspective. Conversion from Polystyrene Foam to Paper Materials Since 1991, Sony has packaged Walkman, Energy-efficient Product Development Handycam and other products in pulp-molds Sony strives to reduce the environmental impact exerted by made of 100% recycled products during use by making them more energy efficient — paper instead of which means reducing their power consumption when on standby polystyrene foam. as well as during operation. TV sets, which account for a In 1996, Sony joined particularly large proportion of the environmental impact of Sony forces with a paper products, are a focus of these efforts. products manufacturer in Focusing first on the standby mode, Sony targeted standby developing Cell Mold, a power consumption of 1 W or lower during fiscal 1998 and of 0.5 W new packaging material Pulp-mold buffer or lower during fiscal 1999. Sony succeeded in reducing standby made from recycled material for 24-inch TVs power consumption to 0.1 W or lower in all analog TV models newly paper and featuring designed during fiscal 2000. Notable among these products, the shock-absorption DZ900 Series employs a receiving element for remote commander properties equivalent to signal with low power consumption, a systemized micro computer those of polystyrene with low power consumption, a bright LED and an intermittent AC foam. Sony partnered with power circuit to achieve the lowest standby power consumption a paper products (0.01 W) in its class. manufacturer in developing a “one-piece box” made by folding a single sheet of cardboard and requiring no Giving the deflection yoke a rectangular polystyrene foam. This shape, rather than the conventional round packaging innovation has A one-piece VCR box shape, reduces standby power consumption while retaining a high-quality, bleed-free been employed for VHS image. VCRs sold in Japan and A rectangular cone deflection Europe since 1998. yoke of TV set With the package for a 14-inch TV first and then for a 24-inch TV in 1999, Sony introduced a buffer material employing pulp-molds instead of polystyrene foam in all its packaging.

Glossary LED: Light-emitting diode. Revised Japanese Law Concerning the Rational Use of Energy: A Japanese law establishing and enforcing energy consumption standards for home appliances (such as TVs, VCRs and refrigerators), office-automation equipment and automobiles. Standby power consumption: Power consumption by products while in a power-off state waiting for a remote controller ON signal. Pulp-molds: Buffer materials for packaging made from recycled newspaper, etc, such as those used to make egg cartons. 29 Action

Sony developed a hexagonal cardboard package for large TVs in Support Systems for Product-related fiscal 2000, and succeeded in reducing the volume of polystyrene foam used by over 60%. This package is used for TVs sold in Environmental Concerns Japan. Design for Assembly/Disassembly Effective Use of Recycled Magazine Paper for Packaging Cost-effectiveness (DAC) Sony teamed up with a paper manufacturer to develop a Looking for ways to make design tool for assembly and technology for using recycled magazine paper as a substitute for bleached packaging paper and applied the 100% recycled disassembly easier, Sony developed the Design for magazine paper substitute in its regular and corrugated cardboard Assembly/Disassembly Cost-effectiveness (DAC) system and surfaces. (See page 23. This report employs recycled magazine promotes it. paper from pages 53 to 68.) DAC employs information obtained in the initial stages of product design to gauge the difficulty of assembly and disassembly quantitatively. The results of these evaluations are quickly applied to improve such aspects of product design as the structure, components employed and connections. Sony employs practical application of DAC to design a wide range of products, from personal computers and displays to VCRs

Product Planning and Design and audio equipment, and uses it as an index for reducing assembly time. The pursuit of easy assembly and disassembly at the product use, maintenance and upgrading stages as well as in reuse and recycling at the final stage helps to minimize materials use.

Systemized Product Life-Cycle Assessment

Packaging materials made (Product Environmental Aspect Assessment System) from recycled magazine paper Determining the impact a product will exert on the environment during its life cycle and developing strategies to reduce it are key Introduction of VOC-free Vegetable Oil-Based Ink issues for product design. Because conducting product Life-Cycle Sony worked with an ink manufacturer on development of a Assessment (LCA) during the design process is no easy task, Sony vegetable oil based ink as substitute for ink excluding volatile has created a system for conducting LCA on its internal network organic compounds (VOCs) and used the VOC-free vegetable oil simultaneously with product assessment. Phased-in installation at based ink for printing. divisions requiring this type of support began in fiscal 2001, making it easier to predict possible environmental impact prior to a The above packaging innovations have been recognized with the product’s introduction. The system provides much-needed support Japan Star Award, Asia Star Award and World Star Award, as well for efforts to achieve environmentally compatible design and as with the Kinoshita-Award by Japan Packaging Institute, which management. recognizes packaging evaluated as technically superior. The Sony Packaging Engineering Committee was honored in 2000 by the Minister of International Trade and Industry (currently, the Minister of Economy, Trade and Industry) for distinguished service in the Excellent Consumer-oriented Group. Sony continues to move forward aggressively in developing and introducing more environmentally conscious packaging.

An LCA evaluation system entry screen

30 Environmental Information Disclosure by eco info Mark Sony has defined a standard of disclosing the content of its At the same time, Sony employs the mark on envelopes and environmental considerations externally by using an eco info mark internal printed matter with the aim of making employees aware of (trademark registration applied for) to convey product the significance of environmental preservation in connection with environmental information in an easily understandable manner. paper and ink and enhancing their environmental consciousness.

An example of eco info mark usage: In addition to the examples shown above, the eco info is used to Product Planning and Design indicate the following factors related to environmental preservation:

100% recycled magazine paper. • Standby power consumption value Printed using VOC(Volatile Organic Compound)-free vegetable oil based ink. • Reduction or elimination of halogenated flame retardants • Reduction of polystyrene foam use The eco info mark is used on such materials as product catalogs, • Use of environmentally conscious packaging materials packaging materials, instruction manuals, product stickers, various promotional items and publicity media. Sony employs it to indicate • Use of environmentally conscious materials explicitly and precisely the environmentally conscious aspects of its products, instead of using vague expressions and images such as “environmentally conscious” or “green product”. Sony uses the mark to report the concrete content of environmental concern.

Environmental Accounting in Product Design

Sony takes various steps in the design stage to reduce increases with years of use. From this perspective, a model’s environmental impact of products. These include the design of environmental impact reduction performance is computed based electric circuits with low power consumption, packaging using less on the planned production number and the product’s average life polystyrene foam or replacing it with substitutes and circuits cycle. The monetary conversion of the environmental impact employing lead-free solder. The additional cost resulting from these reduction performance shown here was computed by applying environmentally conscious designs can be described as Sony’s original monetary conversion coefficient as well as by environmental cost. By conducting environmentally conscious comparing the environmentally conscious design cost with the design, Sony can reduce a product’s environmental impact environmental impact reduction performance in terms of such compared with earlier models. A model’s environmental impact factors as energy conservation and weight, polystyrene foam and reduction performance is proportionate to its production volume, leaded solder reduction. and in the case of the energy conservation performance, it

Subject Subject Comparison Environmental Environmental impact Convert into product model model design cost Effect reduction performance amount of money (million yen) (million yen) Energy conservation 36 million kWh 180 Reduction of 24-inch TV KV-24DA1 KV24-CW1 2 polystyrene foam 34 t 4 Reduction of lead solder 3.2 t 5 Energy conservation 105 million kWh 525 Computer display CPD-G520 CPD-G500 2 Resource conservation 2,550 t 275 Reduction of lead solder 1.5 t 3 Energy conservation 16 million kWh 80 Resource conservation 197 t 21 Business-use VCR MSW-A2000 DVW-A500 180 Reduction of lead solder 0.5 t 1

*The environmental impact reduction performance is the total impact exerted by the number of products planned for manufacture during their life cycle. *Monetary conversion coefficient Energy conservation 5 yen/kWh Average value given by the Active Implemented Jointly (AIJ) Project conducted based on the United Nations Framework Convention on Climate Change. Resource conservation 108 yen/kg Value computed from the cost of waste treatment and recycling. Lead solder 1.4 million yen/ton Computed employing Guideline for Environmental Risk Management.

31 Action

Environmentally Conscious Products

Sony’s environmental activities include promoting resources conservation through efficient use of limited resources, reducing/eliminating the use of hazardous materials to avoid the risk of chemical substances emissions and pursuing energy conservation to reduce emissions of greenhouse gases. Sony endeavors to plan and design environmentally conscious products in each product category that are in the top class among the models on the market. These efforts have enabled Sony to market products that are environmentally conscious in various respects. This section introduces some of these achievements.

Stereo Wide TV (KV-24DA1) VHS Video Cassette Recorder (SLV-SE710)

The first model in the industry to be equipped with a 24-inch flat This model represents the 2001 standard VHS model for European CRT, this wide-format satellite stereo TV is equipped with a D- market. terminal for digital broadcasting satellite reception and the latest Reduction of hazardous materials digital surround capability. Halogenated flame retardants are not used for the printed wiring Reduction of hazardous materials boards or cabinet. Water-based paint without VOCs (volatile With this TV set, Sony introduced lead-free solder for the soldering organic compounds) is used on the front panel. Moverover, lead- of all printed wiring boards. This is the first trial for a CRT type TV in free coating is used for cables. the industry. The printed wiring boards also consist of materials Resources conservation without halogenated flame retardants, which might generate The instruction manual is made from 100% recycled paper and hazardous substances during incineration. carton is made from 90% recycled paper. The packaging is made Resources conservation

Environmentally Conscious Products up of cardboard cushioning, fully eliminating the use of polystyrene The number of parts has been reduced by about 30% and the foam. volume of cables by about 50% in comparison with the previous Energy conservation model, the KV-24WT32. The dismantling process has also been Standby power consumption is 1.2 W in the power saving mode. reconsidered and the materials have been marked to make recycle This low power consumption value positions the product in the top easier. Pulp-molds made from 100% recycled paper is employed class in the European market. as a buffer material, making this the first TV in its class in the market to completely eliminate polystyrene foam packaging. Energy conservation Standby power consumption has been reduced to 0.1 W. The introduction of a rectangular cone deflection yoke and other innovations has reduced power consumption during operation in comparison with the former model as well, lowering to 120 kWh per The model SLV-SE710 VHS video cassette recorder year. This satisfies the numerical standards set by the Revised employs cardboard cushion as packaging, totally eliminating polystyrene foam from the packaging in Japanese Law Concerning the Rational Use of Energy three years consideration of resources conservation. in advance. Additional features, such as easy disassembly and material System Stereo (CMT-PX7) identification, make this model more environmentally conscious. The CMT-PX7 system stereo is a high-end model featuring triple- disk changing of both MDs and CDs and loaded with other advanced features, including up to 16 hours of recording at 4 times speed from CD to MD, a keyboard input capability and PC connectivity. Reduction of hazardous materials Halogenated flame retardants are not used in the printed wiring boards of main portions, and lead-free solder is used in the soldering process. Polyolefin sheets, a non-PVC material, are used for the exterior of the speaker boxes in the first time in the industry. Resources conservation Cardboard cushioning capable of supporting up to about 20 kilograms was developed and adopted as a packaging material.

The KV-24DA1 wide-format stereo TV is the industry’s first CRT- type TV to use lead-free solder for every printed wiring board.

Glossary Recycled materials: Materials recovered from used products collected for reuse. Pulp-molds: Buffer materials for packaging made from recycled newspaper, etc, such as those used to make egg cartons. Halogenated flame retardant: A chlorine or bromide additive that inhibits combustion of plastics. Lead-free solder: Solder with no lead content. Conventional solder contains lead, which may exert an impact on the environment. 32 Energy conservation Handycam (DCR-TRV30) Standby power consumption has been reduced to 0.4 W, less than half the 1.0 W of the DHC-717, the previous model marketed in A digital Handycam for the global market, this model is equipped 1999. with an array of environmentally conscious features. Reduction of hazardous materials Environmentally Conscious Products Main printed wiring boards is produced with lead-free solder, and the electrode terminals in most parts are coated with lead-free plating. Use of materials containing halogenated flame retardants has been eliminated from the main printed wiring boards and the cabinet. No vinyl chloride is used in internal or external mechanical parts, except for cables. Mercury has been eliminated from the view finder LCD by substituting the back light from a fluorescent lamp to LED. VOC (volatile organic compound)-free vegetable oil based ink has been adopted for the package printing. Resources conservation The CMT-PX7 system stereo employing polyolefin sheets, a Non-PVC material, for Cardboard cushion is used for packaging instead of polystyrene the speaker boxes in the first trial in the industry. foam, and 100% recycled magazine paper is used for the top layer of the carton. The plastic bags are avoided completely, and casing is made of recycled magazine paper to protect accessories. Energy conservation MD Walkman (MZ-E900) The CCD image quality has been raised to 1,550 thousand dots as compared with the 1,070 thousand in its predecessor, the DCR- This top-end playback-only MD Walkman boasts the world’s TRV20. This upgrading would normally increase power smallest size, lightest weight and longest playback time of 100 consumption, but the increase was offset in the DCR-TRV30 by the hours (as of the product announcement in August 2000). above-mentioned conversion from a fluorescent lamp to LED and Reduction of hazardous materials by improving efficiency of D/D converter. The resulting 3.8 W power Lead-free solder is used in soldering the printed wiring boards, consumption (NTSC model) is nearly the same as that of the DCR- which also do not contain halogenated flame retardants. Newly TRV20, which consumed 3.7 W (with viewfinder in use). The PAL developed Non-PVC material has been adopted for the headphone system model’s power consumption is the same as that of the and remote control cables. DCR-TRV20 (3.7 W). In addition, the carton is made from 100% recycled magazine paper and printed with VOC-free vegetable oil based ink. Resources conservation This is the world’s smallest and lightest MD Walkman. Paper materials are used for packaging in place of polystyrene foam. Energy conservation Development of energy-saving power control circuit has reduced power consumption to 0.05 W — 98% lower than the power of the MZ-2P marketed in 1992. The rechargeable nickel hydride battery and AA dry batteries support approximately 100 hours of playback.

The model DCR-TRV30 Handycam employs lead-free solder for the main printed wiring boards.

The MZ-E900 MD Walkman saves resources with the world’s lightest body and 100-hour playback with low power consumption.

Glossary Olefin sheets: Sheets made from polyolefin (a type of plastic resin). LED: Light-emitting diode. Vinyl chloride: Material with the potential to generate hazardous gases during combustion. D/D converter: A circuit for transforming voltage of direct current. NTSC model/PAL model: Systems for full-color TV broadcasting. The NTSC system is employed in the Americas and Japan, etc., while the PAL system is employed primarily in Europe. 33 Action

Note-type PC (VAIO SR Series) Personal Computer (VAIO LX PCV-LX50G)

This is a small, slim and lightweight notebook personal computer in This VAIO desktop personal computer is designed for the Japanese the VAIO series. market. Reduction of hazardous materials Reduction of hazardous materials Halogenated flame retardant is not used in the main printed wiring The housing is made from halogen-free materials. boards and housing. Resources conservation Resources conservation Corrugated fiberboard cushion has replaced polystyrene foam as a The housing is made from recyclable magnesium alloys. Cardboard packaging material, and the surfacing of the carton employs 100% cushion and pulp-mold have replaced polystyrene foam as recycled paper. packaging materials. Recycling design Energy conservation Full consideration has been given to ease of disassembly in Increasing the individual cell capacity and taking advantage of anticipation of future recycling. The disassembly time is the VAIO’s high-density mounting technology have made it possible to shortest in its class. equip a 6-cell battery. So that the battery’s capacity has been increased twice that of its conventional model (PCGA-BP51A), enabling VAIO to operate for up to 5 hours, and an optional high- The VAIO LX PCV-LX50G PC has been given the shortest capacity battery (PCGA-BP4S) permits up to 10.5 hours of disassembly time among similar operation (PCG-SR9G/K). This performance is in accordance with models on the market in consideration of recycling ease. the numerical values for the power saving mode set by the International Energy Star Program and with criteria on Energy Environmentally Conscious Products Consumption Efficiency set by the Japanese Green Purchasing Law. Extended lifetime This model has improved its expandability and its lifetime lengthened by equipping it with terminal for USB/IEEE1394 and slots for PC card and memory expansion. AC Adapter for Mobile Phone (DoCoMo by Sony SO503i)

This high capacity storage system energy-efficient AC mobile phone adapter is made for the Japanese market. Reduction of hazardous materials The printed wiring board is made from material which does not contain halogenated flame retardants and soldered with lead-free solder. Resources conservation The instruction manual is made from 100% recycled paper. Energy conservation A newly developed power control circuit has reduced standby power consumption to approximately 10 mW, the lowest consumption among similar models on the market and just 1/30 the power consumption of the preceding model. The VAIO SR Series Note-type PC is in accordance with the criteria of the Japanese Green Purchasing Law, achieving up to 10.5 hours of operation with an optional high capacity battery.

The SO503i mobile phone AC adapter has reduced standby power consumption to 10 mW, the lowest among similar models on the market and just 1/30 the power of the preceding model.

Glossary International Energy Star Program: A registration system for optional energy conservation products mutually recognized by the Japanese and U.S. governments. It applies to personal computers, displays, printers, facsimiles and copy machines, etc. In the case of personal computers, the key factor is a shift to standby mode (under 15 W for VAIO) within 30 minutes when the computer is not in use. Products that satisfy these requirements are 34 permitted to bear the Energy Mark after application to the Japanese Ministry of Economy, Trade and Industry. Flux: An additive used to improve the fluidity of solder. MO Drive (SMO-F561) Digital Photo Printer (DPP-SV55)

This is a 5.25-inch MO disk drive with a recording capacity of This high-quality digital photo printer allows direct printing of 9.1 GB for high capacity storage system when installed in personal photos taken with a digital camera, without requiring the use of a computer. personal computer achieving photo-realistic image quality. Reduction of hazardous materials Reduction of hazardous materials Halogenated flame retardants are not used in the printed wiring Halogenated flame retardants are not used in the printed wiring boards. The flux used in soldering is made of water-soluble boards and cabinet. materials without VOCs. Polyester FFCs (Flexible Flat Cables) Resources conservation Environmentally Conscious Products which do not contain halogenated flame retardants are used for the Ribbon cartridges collected from customers are reused. A focusing internal cables, and PVC has been eliminated along with all on the adoption of ICs has made it possible to reduce the number mechanical parts. of electrical parts by approximately 500 in comparison with the Resources conservation previous model, the CVP-G7, which incorporates some 1,000 parts. The use of polystyrene foam as a packaging material has been Energy conservation reduced by 23% (12g) in comparison with the previous model The power consumption of 1 W during standby is top level in its SMO-F551 (52g). category, and the power consumption during printing of 0.17J/mm2 Energy conservation (energy per unit) is also the best level on the market. By reducing the driving voltage for the driver IC from 12 V to 5 V, its power consumption has reduced to 13.7 W, an improvement of 25%, in comparison with the previous model SMO-F551.

The model SMO-F561 MO drive achieved total elimination of PVC parts, including cables

Professional-use VCR with Play-mode (J-1) The DPP-SV55 digital photo printer boasts the A playback-only video deck for the Betacam used by broadcasting top-level energy efficiency during standby on the market and reuses ribbon cartridges stations. collected from users. Resources conservation Downsizing and weight-reduction efforts have reduced weight from 33 kilograms to 7.5 kilograms, or less than one-fourth the weight of the preceding model, and the use of materials has been minimized. Environmental Consideration for The volume of materials required to make the printed wiring boards Semiconductor Products has been reduced from 1,120 cm2 to 220 cm2, a decrease of 80%, and the total length of internal cables has also been reduced by Sony’s measures to reduce environmental impact from semiconductor over four-fifths, from 108.2 meters to 20 meters. The packaging products encompass the use of lead-free solder, including a switch to materials have been made more environmentally sound by reducing lead-free external pins, and the reduction of both power and materials polystyrene foam consumption to less than half, from the 575 consumption. Its use of lead-free solder in semiconductor products grams employed for the preceding product to 259 grams. exemplifies the kinds of responses Sony has adopted. Energy conservation Lead-free solder inevitably increases temperatures higher than tin/lead solder. Sony has succeeded in developing semiconductor Power consumption in operation has been reduced to 50 W, packaging that can endure temperatures as high as 260 ˚C, sufficient one-fourth the 200 W consumed by the preceding model. to support the use of lead-free soldering. In response to the need for lead-free external pins, S-Pd PPFs (Paradium Preplating Leadflame) have been used in semiconductors since 1995 and tin and bismuth plating since 1999. The lead-free pins made possible by these innovations were in use in 60% of Sony semiconductor products in all categories as of March 2001 as a step toward the target of employing 100% lead-free external leads by the end of September 2001. The J-1 business-use VCR with play-mode has reduced power consumption to 50 W from the 220 W consumed by its predecessor as well as achieving impressive downsizing and weight reduction.

Glossary Bismuth: A chemical element with the symbol Bi. 35 Action

Distribution, Sales and Service

Business activities such as distribution, sales and service generate environmental impact of a different nature from manufacturing operations. Sony implements a variety of measures to reduce the environmental impact exerted by these non-manufacturing business activities.

Environmental Activities in Logistics Environmental Activities by Service Operations Sony Logistics Co., which handles Sony’s distribution in Japan, also has its responsibilities, putting environmental considerations at Environmental Activities at Sony Service Company Ltd. the forefront of logistics. Its modal shift plan is an effort to rely on The main activities at Sony Service Company in Japan include more ecologically efficient rail and marine transport instead of resource conservation through the introduction of electronic highway transport. This initiative also extends to joint distribution business procedures and communications along with energy with other companies as well as to steps to lower fuel consumption conservation and discarded parts recycling. Other conservation and increase recycling. efforts involve separation of waste — including soldering scraps, Sony Logistics is cooperating with Toshiba Corporation in rail printed wiring boards, discarded home electrical appliances, used transportation employing 31-foot container cars. Sony ships packaging and corrugated cardboard — for disposal after servicing. batteries, tape products and personal computers to Osaka by train

Distribution, Sales and Service The service operations are also energetically pursuing programs to in containers, and Toshiba Corporation uses the same containers to lengthen product lifetimes and working toward components sharing transport refrigerators from Osaka to Tokyo. with the Network Companies. Efforts currently under way to reduce fuel consumption center on implementation of a fuel reduction program in which targets are set based on measurements of light oil and gasoline consumed by A Longer Life for European PlayStations vehicles directly or indirectly employed in transportation since May Since PlayStation’s launch in 1995, more than 32 million units have 1997. The program is helping to cut CO2 emissions as well. been sold in Europe. Most of the consoles returned to Sony In the area of recycling efforts, nearly 100% of the approximately Computer Entertainment Europe (SCEE) are repaired and sent back 213 tons of stretch film used in transportation during fiscal 2000 to the customers directly, but SCEE has also operated a “graded” was successfully recycled. program since 1996 to return the consoles to “as new” condition. Graded consoles are then sold to selected resellers throughout Europe. Consoles that cannot be repaired or graded are sent for Environmental Conservation in disassembly and materials recovery. During the February to June Marketing Activities 2000 period, for example, almost 30 tons of PlayStation plastic were recycled into various secondary applications. Sony Marketing (Japan) received ISO14001certification in March SCEE is continuing its pursuit of this type of refurbishing and 2000. It is the first Sony operation to develop a two-tiered system recycling business. It is currently examining ways of introducing that supports affiliated sales operations in adopting simple new products into the project early in 2002. environmental management system and regional offices in acquiring ISO14001. The obstacle to acquiring certification for Sony Marketing as a whole was the dispersal of its operations in 13 locations throughout Japan. The hurdles included implementing the environmental measures unique to each location, minimizing chemical use and adopting an environmental perspective on marketing. Sony Marketing accurately measures gasoline consumption by vehicles used in the field, for example, and strives to improve fuel efficiency. Besides working to introduce ultra-low-emission vehicles, it expects to take all diesel-powered vehicles employed in marketing operations out of service by November 2001. Also concerned with recycling, Sony Marketing responded to the Law for Recycling Specified Kinds of Home Appliance in Japan by holding explanatory meetings for retailers nationwide and PlayStation disassembly in process (Europe) concluding agreements with distribution businesses before the law went into effect on April 1, 2001.

Glossary Stretch film: Cling wrappers used to hold goods fast during transportation. 36 Product Recycling

Sony adapts to the conditions in various countries and regions in the recycling of products and batteries. Sony has led the industry in Japan in take-back and recycling of packaging materials, employing a system involving inscription of recycling marks on packaging. Sony has begun taking back polystyrene foam from its retailers and recycling it through liquidification with limonene extracted from the peel of citrus fruits in Japan. Sony introduced an early take-back program for secondary batteries in 1992. Sony is working actively on development of recycling technologies for personal computers, magnetic tapes, CD-ROMs and other products and conducting programs to recycle containers, packaging and electric home appliances.

TV Recycling Product Recycling

Sony maintains full awareness of the importance of making easily fiscal 1998 and completed in March 1999, it was an integrated recyclable products in every stage of product development, from recycling plant handling the four major home appliances: TVs, planning and design to final production. Sony’s ongoing efforts to refrigerators, washing machines and air conditioners. Sony drew on advance its recycling process technologies have led to particularly expertise acquired in constructing the Saitama experiment line to notable progress in color TV recycling. In Asia, electronic products supply the new plant with an even more upgraded CRT recycling such as used TVs are already recycled in South Korea and Taiwan. system. Sony has been researching ways of increasing efficiency in TV This demonstration plant is helping to establish systems for a dismantling and recycling since 1991. Sony’s engineers began by recycling society by developing home electronics recycling developing recycling technology for cathode ray tubes (CRTs), technologies and pursuing research into demonstration models. which account for over half of the weight of a TV. In 1992 they Sony has also introduced advanced technologies to improve completed development of a separation of the front panel from the working conditions and minimize the plant’s impact on the rear funnel. They also developed a technology for dismantling TVs surrounding community. and removing the CRTs. In fiscal 1994 in Japan, the Association for Electric Home The Home Appliance Recycling Law Appliances endorsed of these disassembly and CRT recycling June1998 saw the promulgation of the Law for Recycling Specified technologies by commissioning Sony to develop and construct the Kinds of Home Appliance (referred to as the “Home Appliances world’s first automated used TV recycling line. The resulting line Recycling Law”) in Japan. Sony had laid the groundwork for its automated much of the recycling process, which progressed from response in advance, based on its accumulated experiences. Sony opening of the cabinet and removal of the CRT to separation of the cooperated with other companies, for example, in establishing 190 front panel from the rear funnel and, finally, to pulverization of the designated take-back sites and setting up a system that includes glass for recycling. The Association for Electric Home Appliances transportation among them. Sony also tackled the issue of ensuring operated this experiment line, housed in the Kazo Plant of recycling fee payment, a common concern for industry members. Nakataya Co., Ltd., in Saitama Prefecture, until March 1997. After examining the problem in detail through the Association for Meanwhile, the Association began development in fiscal 1995 of Electric Home Appliances, Sony participated in formation of the a more advanced recycling plant in a program for the Ministry of Electric Home Appliances Coupon System, which has become the International Trade and Industry (currently, the Ministry of standard method of recycling fee payment and receipt in the Economy, Trade and Industry). Operated in Nakamachi (Japan) in industry.

■ History of Used TV Recycling at Sony ■ Key Points of the Law for Recycling Specified

’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 Kinds of Home Appliance (Japan) Subjects: 4 appliances

Integrated electric home appliance recycling • TVs • Washing machines pilot plant in Nakamachi, Ibaraki Prefecture • Refrigerators • Air conditioners Manufacturers Secondary distribution Industry Primary distribution Designated Recycling plants Experiment line in Kazo, Saitama Prefecture, Disposing Retailers, take-back-site for TV dismantling and CRT recycling parties etc.

Disposers’ Fixed fee for disposal obligations Feb. ’91 R&D begun on Home CRT recycling technology Recycling Research Center opened (Oct. ’97) Network Collecting returns/products sold in past Company Sep. ’92 CRT panel/ Retailers’ obligations funnel separation technology Electric home appliance Investment made in Green Cycle Corporation facilities Recycling according to the standard The Law for Recycling Manufacturers’ obligations Specified Kinds of Implementation Apr. 2001 Home Appliances Manifest system Monitoring Monitoring method

Glossary Secondary battery: A rechargeable battery. Manifest: A monitoring system in which disposing parties investigate disposal of hazardous materials, including their transportation. 37 Action

■ Locations of designated take-back-sites Sony Electronics (America) and recycling plants (Japan) Take-back System Designated take-back-sites: 190 Sony Electronics (America) has launched a voluntary take-back Recycling plants: 15 system for consumer electronics in the United States. The program builds on the success achieved in the management of manufacturing waste. Introduced in Minnesota in fiscal 2000 on a trial basis, the program will be extended to eight other states in the U.S. in fiscal 2001. The program will be expanded further as a satisfactory recycling system developed at no cost to the consumer and that generates sufficient profits for the recyclers to offset any recycling costs. Product Recycling

Home Network Company, Recycling Research Center in Ichinomiya Sony established the Recycling Research Center in Ichinomiya (Japan) in 1997 to serve such primary purposes as obtaining

feedback on TV designs, increasing the percentage of TV recycling Handling used TVs in the U.S. take-back program by weight and making TV’s recycle more economically efficient. The center has focused its research to date on technologies for Recycling of Electronic and identifying and recycling plastics; techniques for disassembling basic wiring boards; TV deflection yokes and VCRs; and CRT Electrical Waste in Europe disassembly technologies. The Recycling Research Center supplies In Europe, a new Directive on Waste Electronics and Electrical the technologies it develops to Green Cycle Corporation* in nearby Equipment in Europe (WEEE), expected to be effective by 2005, will Nagoya. make manufacturers and importers responsible for collection and * A recycling plant in Nagoya (Japan), in which Sony is the largest shareholder. recycling of waste electronics from private households across Europe. The legislation is intended both to ensure proper handling of the used equipment and to encourage development of products with less environmental impact at end-of-life. Recycling laws are already enforced by several European countries: Sony currently participates in national recycling programs in Switzerland, the Netherlands and Norway, where producer-financed recycling systems are in place to satisfy legislation governing treatment and recycling of consumer The Green Cycle Corporation (Japan) Home Network Company Recycling electronic and electrical waste. The electronics industry is Research Center in Ichinomiya (Japan) negotiating similar agreements to satisfy recycling regulations in Italy, Belgium and Sweden. Sony Europe also operates several independent product recycling programs, from which the companies gain valuable experience in recycling and in development of recycling technology. Computer Display Take-back (Germany) Since March 1996, Sony monitors sold in Germany included a pre- paid recycling voucher for the return of either an old monitor or the new monitor at end-of-life to retailers or certified recyclers.

A CRT treatment line at the Green Cycle Corporation (Japan)

Glossary WEEE: The Directive on Waste Electronics and Electrical Equipment in Europe. Electric home appliances coupon system: Based on the Law for Recycling Specified Kinds of Home Appliances, this system was established to ensure efficient operation and management by retailers and businesses. Electric home appliance coupons bear a designated home appliance disposal management 38 allotment and show proof of payment of the requisite recycling fee. This system also gives consumers confirmation of the pick-up conditions for the home appliance. Compact Secondary Battery Polystyrene Foam Recycling with Limonene Collection/Recycling Sony operates a polystyrene foam recycling system employing Sony became the first in the industry to limonene, a liquid obtained from citrus fruit peels. The Sony Group collect and recycle nickel-cadmium and installed a demonstration plant in the Limonene Recycling lithium batteries in 1992 and 1996, Research Center in Ichinomiya (Japan), in 1998 and followed this respectively. The Battery Association of with the launch of group-wide recycling in 1999. Some 14 tons of Japan, an organization comprising polystyrene waste generated by the Group are currently recycled companies in the battery industry, monthly, and the total volume recycled reached 267 tons in March Product Recycling initiated voluntary collection of nickel- 2001. cadmium-alkaline batteries in 1993 and Battery collection bags adopted One advantage of Limonene Recycling System is the easy by Sony at an early stage of nickel-metal-hydride, lithium ion and removal of foreign matter it permits after the polystyrene is compact lead-sealed batteries in 1998. Sony has cooperated fully dissolved. Sony researchers have completed development of a with these activities. technology for removing fish oil Sony has also been actively involved in the Center for Promotion adhering to fish packages and of Recycling of Compact Secondary Batteries since it was formed have installed a demonstration by the Battery Association of Japan in response to the Recycling facility in the Recycling Research Law for Promotion of Effective Utilization of Resources in Japan Center in Ichinomiya, where enacted in 2000. This law obliges battery and equipment industries demonstration tests are under to collect and recycle compact secondary batteries beginning April way. 2001. The technology supports Recycling of batteries is well-established in Europe. In Germany, conversion of polystyrene foam especially, batteries used in Sony products have been subject to items such as fish packages into high-quality recycled polystyrene. 100% limonene-recycled collection and recycling since 1998. In the United States, NiCad polystyrene foam packaging batteries and lead-acid batteries have been collected and recycled Part of the Group’s recycled since 1993. polystyrene is employed to make100% recycled polystyrene foam and used for packing Sony products, including TVs and video and DVD players. Sony has also teamed up with a stationery products manufacturer to produce ballpoint and marking pens from recycled polystyrene. These are being adopted as standard corporate Recycling symbol and color coding stationery items in line with Sony’s green purchasing initiative. The recycled polystyrene is of such high quality that other ■ Compact Secondary Battery Recycling System companies have begun to use it as well. Products made from limonene-recycled materials are given the “eco-mark” indication. LCA (Life-Cycle Assessment) of the 100% recycled polystyrene Collecting organization Recycling member foam has shown it to reduce CO2 emissions during manufacturing by one-third as compared with new foam manufactured from Membership contract Sales volume reporting/ Reporting consignment contract/ Membership fee Cost guidance petroleum.

Designated industry • Compact secondary battery manufacturers • Manufacturers of machinery using compact secondary batteries ■ Environmental Aspects Assessment of • Importers/distributers handling compact secondary batteries • Importers/distributers using compact secondary batteries Polystyrene Foam Recycling Process

Volume of CO2 emissions per kg as compared with polystyrene foam recycling Used compact secondary batteries Collection point establishment (kg/kgPS) Limonene Recycling System

Registered� collection points Recycling by heat contraction Local government Recycling members’ New polystyrene collection points (cooperating retailers, etc.) collection points composition 0 0.5 1.0 1.5 2.0 2.5 (Unit: kg) Collection Confirming investigation table

Registered shipping agencies

Shipping Confirming manifest

Registered recyclers

Glossary LCA (Life-Cycle Assessment): An assessment technique that adds up the environmental impact of a product or service at every stage, from raw materials mining to disposal or recycling, and evaluates it quantitatively and objectively to the greatest extent possible. 39 Action Base or Platform Environmental Activities in Various Business Operations

Sony’s business is becoming increasingly diversified on a global scale. Environmental management is becoming an important aspect of all parts of Sony operations and further research and corporate efforts are required. This section introduces examples of the environmental conservation measures Sony is pursuing in its operations in various fields and regions.

Sony Computer Entertainment Inc.

Sony Computer Entertainment Inc. (SCEI) is developing its popular conservation equipment and reduction of utility-conveyance power PlayStation business on a global scale. SCEI Headquarters through the use of natural slopes. These and other innovations acquired ISO14001 certification in May 2000, and every employee have reduced energy consumption by about 16% in comparison is actively engaged environmental conservation. with conventional semiconductor plants. Reuse of waste materials Creating Environmentally Conscious Products employing separation in the effluent system and full recycling of PlayStation2 is a computer entertainment system that functions as waste materials have enabled the plant to realize its goal of zero a game machine as well as a platform for CDs and DVDs. By landfill. providing expandability for new functions, the system offers long-

Environmental Activities in term use. PS one, released in July 2000, is a resource-conserving

Various Business Operations new-concept PlayStation that uses only about one-half as many Sony Music Group parts as the early PlayStation models and is only about one-third the size. The Sony Music Group conducts business in a wide range of Environmental Measures for Future Products entertainment fields, including talent scouting, music software SCEI is implementing energy-saving designs, improving its product design and sales as well as character creation and direct recyclability rate and reducing disassembly time in the product marketing. design and development stages. The energy used by PlayStation2 Building Environmental Management Systems has been reduced by about 20% compared with the earlier models, The Sony Music Group is seeking ISO14001 certification in for example, and SCEI plans to eliminate the use of hazardous accordance with Mid-Term Environmental Action Program, Green materials (such as lead, halogen, vinyl chloride and chromium) from Management 2005. After the Group’s major sites acquired ISO9000 the products by March 2006. Efforts are also being made to adopt international quality management standard certification, efforts environmentally conscious packaging materials. began to implement ISO14001 standards. All 20 manufacturing sites and seven non-manufacturing sites outside the United States have now acquired ISO14001 certification. In the United States, non-manufacturing distribution centers in Bolingbrook, Illinois, and Fresno, California, are seeking independent ISO14001 certification. In addition, 22 non- manufacturing sites are preparing a single-group certification involving about 100 sites in the Americas, including Sony PS one Electronics, Sony Pictures Entertainment, Sony of Canada and AIWA Co. Good Corporate Citizenship Activities The Sony Music Group sponsors a variety of environmental events. Sony Music Entertainment Brazil has established an annual Environment Day on which it holds seminars on topics related to recycling, health and safety, and environmental conservation, with leaders from government, industry and the community invited to attend. In Indonesia, a Group member planted 1,000 trees in Jakarta’s Central Park. Some Sony PlayStation2 Music artists and the mayor Environmental Conservation Activties at of Jakarta joined in the event. Fab1 Semiconductor Plant Opened in April 2000 to produce such products as graphic LSIs for PlayStation2, the Fab1 semiconductor plant has introduced leading-edge energy conservation technologies and other environmental technologies. Its advanced environmental practices include Standard Machine Interface (SMIF), introduction of a co-generation system, adoption of inverters and other energy

Planting trees in an Indonesian park

Glossary Co-generation System: A system for both self-generation of electric power and efficient use of the heat created in the power generation process for heating water and air. Zero-landfill (Sony definition): Elimination of landfill disposal through the reduction, reuse or recycling of 95% or more of waste generated. 40 Sony Pictures Entertainment impact and cost, and exchanging opinions with its Sony Pictures Entertainment (SPE) is a global operation handling members. In March 2001, movie and TV programming production and distribution; channel Tsingua University organized an investment; home entertainment acquisition and distribution; studio interim-report meeting for the operation; new entertainment products, services and technology; project in Beijing that attracted Various Business Operations Environmental Activities in and video entertainment development in 67 countries. enthusiastic interest from Environmental Conservation Activities representatives of China’s government and academia in at Production Studios attendance. This program is An interview meeting at Shanghai Suoguang SPE strives to reduce its environmental impact through the continuing in fiscal 2001. Visual Products (China) reduction, reuse and recycling of materials. The company recycled more than 50% of the solid waste on its lots in fiscal 2000, for example, including debris from set construction, paper, videotape and film. Companywide conservation efforts and investment in Sony Life Insurance Co. energy-saving equipment led to a reduction in energy consumption of over 15% during the term. Water-based paint, which is replacing By offering rational life insurance and high-quality service, Sony Life oil-based paint to reduce air emissions, now accounts for over 75% Insurance provides its customers in Japan with economic security of the paint used on the lots. And paint left over after filming is and stability. employed elsewhere or donated to local organizations for use in Environmental Themes Form a Life Insurance Company neighborhood improvement. (In fiscal 2000, SPE donated nearly Beginning in 2000, Sony Life Insurance started building an 900 gallons of paint to local organizations.) environmental management system at its headquarters. The system went into effect in December of that year, and in March 2001, Sony Life Insurance became the first company in its industry in Japan to acquire ISO 14001 certification. Although only a few aspects of the life insurance business influence the environment directly, programs have been established to deal with indirect influences. The following are some examples: From a product perspective Considering the introduction of environmentally conscious products as a special variable insurance account or through the selection of mutual funds among insurance products and services in order to meet customer needs. From an operational reform perspective Promoting paperless procedures by introducing IT into operations, as a large number and variety of printed forms are currently required in the life insurance business. Sony Pictures Entertainment (U.S.A.) From a community action perspective Promoting volunteer activities and donations to environmental conservation as a company operating a highly public business. Shanghai Suoguang Visual Products Co. By developing programs that meet the unique needs of the life insurance business, Sony Life Insurance is creating systems that Shanghai Suoguang Visual Products (SSV) in China primarily contribute to protection of the global environment, in addition to manufactures large visual equipment, such as color TVs, computer conducting daily efforts to reduce energy and resources monitors and projectors. consumption, encourage recycling and promote green purchasing. Environmental Accounting Sony Life Insurance SSV conducts various energy-saving and waste-reduction activities aims to conduct an to reduce environmental impact. It introduced environmental environmental accounting in fiscal 2000. This was among the model cases of management program advancements introduced in a joint research project conducted by designed specially for Keio University of Japan and Tsinghua University of China, the the life insurance “3E’s” Research Institute Project focusing on energy, the industry and to environment and economics. SSV has welcomed a team to continue improving its conduct a local survey, presenting it with data on environmental environmental performance. Sony Life Insurance environmental management program materials and envelopes made from 100% recycled magazine paper. Glossary Green purchasing: Environmentally conscious purchasing of goods or service. 41 Support System

Environmental Technology Development

Since the establishment of the Center for Environmental Technologies (CET) in the Sony Research Center in 1995, Sony has established dedicated divisions and taken measures to develop environmental technologies. Today, the Technical Support Center and the development divisions of various Network Companies, including Home Network Company’s Recycling Research Center and Environmental Center Europe’s Environmental Laboratory, perform a central role in environmental technology development. Under a commission from the Sony Environmental Conservation Committee, the Strategy Committee for Environmental Technology provides funding to support work in the environmental technology areas of particular significance to the Group. Thus, Sony is deploying its unique technologies to help preserve the environment.

Lead-free Soldering Technology The built-up multi-layer printed wiring boards used in cellular Lead contained in soldering materials has the potential to pollute phones permit high-density, highly detailed wiring. They require groundwater if it is dissolved by acid rain. highly sophisticated technology, however, involving lamination of Sony initiated basic research into lead-free soldering in 1995 and resin-coated copper onto a regular built-up multi-layer printed has now reached the practical application stage. From its beginning wiring board, using laser beams to form a viahole, removing the with tin-zinc solders, the research moved to tin-silver soldering conductor with copper plating and employing patterning to create materials and eventually to the development of tin-silver-bismuth- the circuits. copper soldering materials with a focus on melting temperature and Because the insulation layer in the built-up boards was made of mechanical strength. Commercialization tests on this alloy were resin, an inherently flammable material, with no glass cloth content, conducted at manufacturing facilities for the three standard it was necessary to make the printed wiring boards flame resistant soldering methods, reflow soldering, flow soldering and hand without compromising their printed wiring board properties. Sony’s soldering. The tests led to the introduction in 2000 of lead-free engineers adopted a resin structure containing nitrogen to increase soldering in the reflow soldering process for the multi-layer printed heat-resistance and modified the wiring boards used in digital video cameras, the MD Walkman and content and dispersibility of the notebook computers. Meanwhile, Sony teamed up with a machine phosphate compounds and filler manufacturer for joint development of flow soldering equipment for while maintaining a balance with their lead-free soldering, leading to the adoption of lead-free soldering of processing capability. This enabled TV printed wiring boards. Another project targeted them to make the built-up printed commercialization of hand soldering using flux-cored wire solder. wiring boards halogen-free while These efforts have made it possible to employ lead-free soldering in achieving high-grade flammability the post-process soldering and repair processes for the products resistance. Halogen-free built-up printed discussed above. In Sony’s Mid-Term Environmental Action wiring boards Program, Green Management 2005, Sony intends to adopt lead- free solder for all soldering of products Plastic Identification Technology and all plating of component In the course of research into recycling of TV sets and other electrodes. products, Sony has developed a technology that permits recycling Sony is currently of plastic materials used in many products. promoting the The technology has made it possible to locate black plastics, formerly difficult to distinguish from other plastic materials because

Environmental Technology Development introduction of an alloy that contains tin, they do not reflect much light, quickly and identify the type of flame silver and copper as retardant they contain. The twofold process distinguishes them with its components. more than 99% accuracy. Mid-infrared Reflectance Spectroscopy A frequency domain algorithm and spectrum library were newly Mounted printed wiring boards employing lead-free solder developed and incorporated into mid-infrared reflectance spectroscopy. Surface Optimizer Halogen-free Built-up Printed Wiring Boards A device developed in-house at Sony removes stains, unevenness and While working to introduce the use of halogen-free printed wiring coatings from materials’ surfaces, boards in various products, Sony is also developing leading-edge making it easier to obtain information halogen-free built-up printed wiring board technology. After about their properties. achieving halogen-free multi-layer printed wiring boards in 1998, Green Cycle Corporation employs Sony succeeded in making built-up multi-layer printed wiring practical plastic recycling boards halogen-free as well in 2000. It is now possible to use applications made possible by the halogen-free printed wiring boards in nearly any configuration. integration of these devices. A plastic identification system

Glossary Frequency domain algorithm: A discriminating algorithm employing absorption of specified infrared rays. Spectrum Library: Database on the infrared spectra of various plastics. Halogen-free printed wiring boards: Printed wiring boards that do not use halogenated flame retardants. Flow soldering: A method of soldering in which parts are dipped into soldering flow to join them. 42 Reflow soldering: A method of soldering in which paste solder is spread over the circuit board and melted in an oven. Lithium Ion Secondary Batteries with Electrodes Made of Bio-Coffee Carbon

Sony discovered in 1996 carbonaceous materials derived from composite raw material, including use as a neutralizer in coffee grounds, precursors, which have excellent properties for use wastewater treatment. in making negative electrodes for lithium ion secondary batteries. According to industrial statistics, 270,000 tons of coffee ground waste is disposed of annually, but the grounds contain large quantities of residual water, which has posed problems involving ■ Hydrogen Persulfide Wastewater the energy required for transportation, decomposition and Recycling Flow Concept desiccation. Sony focused on the fact that the coffee ground waste can be dried with heat produced by biological fermentation and Conventional treatment New technology demonstrated that this heat is great enough to eliminate fossil fuel energy from the desiccation process. Furthermore, this technology Waste mixture of involves clean emission carbonization and requires no acid/alkali sulfuric acid and hydrogen treatment to remove impurities. peroxide Adding nitric acid Diluting Sulfuric acid ■ Coffee Carbon Flow Concept with water Oxygen

Water content (%) Wastewater treatment • Reclaimed sulfuric acid 80 • Raw material for other industries • Neutralizer for wastewater treatment

Canned coffee Environmental Technology Development production Lithium ion (about 270,000 t/year)� battery Bio- Carbonizing negative desiccation Waste process terminal coffee process carbon grounds material Chemical Modification of Waste Polystyrene (water content about 80 wt%) Sony’s laboratories have developed a new reclamation method that converts waste polystyrene used in polystyrene foam and VHS cassette shells into a polymer flocculant for wastewater treatment. A joint study has been under way with Lion Corporation since 1997 with the aim of commercializing the technology. A Sony 0 semiconductor plant has been using this polymer flocculant since Process August 1999 to raise the speed of wastewater treatment and water quality as well as to reduce the volume of sludge generated.

Sulfuric Acid Waste Recycling Technology

A mixture of sulfuric acid and hydrogen peroxide is used to clean wafers in semiconductor manufacturing.The waste mixture must be treated with large amounts of water and chemicals for wastewater treatment, generating large volumes of sludge and wastewater. An innovative Sony technology has solved this problem by adding a trace of nitric acid to the waste mixture, decomposing the residual hydrogen peroxide it contains.The treated waste mixture can be used as sulfuric acid. Adopted by Sony Computer Entertainment’s Fab1 plant in October 2000 and scheduled for gradual introduction by other semiconductor plants, this technology reduces both The condensation effect of water-soluble polymers chemicals for wastewater treatment and the amount of sludge and wastewater generated. It offers high-level applications as a

Glossary Wafer: Semiconductor silicon wafer. Precursor: A reaction intermediate generated during chemical synthesis. 43 Support System

Environmental Education and Support Programs

Recognizing the importance of environmental education to the realization of a sustainable society, Sony positions environmental education as one of the driving forces in the Sony Environmental Vision. To encourage the approximately 182,000 Sony Group employees worldwide to participate in environmental efforts, Sony has prepared a broad range of awareness-raising and education and support programs. Sony’s policy focuses on environmental education that helps individual employees convert their “awareness” of the need for environmental protection into “environmental action.”

In-house Environmental ■ Environmental lectures at Sony Headquarters Information Dissemination Title Lecturer The Environment and Dr. Norman Myers 1st Consultant in Environment ECOLOGY, Sony’s environmental internal newsletter, is published Management in the 21st Century and Development regularly to communicate recent information and educate 2nd Global Environmental Issues Dr. Takafumi Matsui employees. The in-house PR newsletter Sony Times and the in- from a Universal Perspective Professor of the University of Tokyo Working toward a Recycle-oriented Mr. Hiroyuki Fujimura house news videos “Scope” carry Society: The Concept and Practice Chairman & CEO of Ebara Corp. articles concerning the of Zero-Landfill Ms. Masako Unoura 3rd Project Manager of environment periodically. Zero Emissions Initiatives ECOLOGY, which has recently Institute of Advanced Studies The United Nations University celebrated its 40th issue, as well The Living Earth: The Relationship as newsletters published by Sony between the Environment and 4th Mr. Jin Tatsumura sites outside Japan can be Human Beings as Seen from a Director of The Gaia Symphony viewed easily on the intranet Filmmaker’s Perspective Dr. John Peterson Myers homepage by Sony Group 5th To Bring Back “Our Stolen Future” Director of W. Alton employees. The June 2000 issue Jones Foundation Is a Sustainable Society Possible? carried a message from (then) 6th Dr. Ryoichi Yamamoto The Challenge of Eco-Design Professor of the University of Tokyo Various Sony Group companies’ President and CEO Nobuyuki environmental internal newsletters Idei, and the March 2001 issue from President and COO Kunitake Ando.

Integrating Environmental Education into the Human Resource System July 2000 saw the inaugural meeting of the Environmental An environmental lecture at Sony Music An environmental lecture at Education Management Committee at Headquarters — attended by Entertainment (Brazil) Sony Headquarters (Japan) the Senior General Manager of the Human Resources Development & Service Center and representatives from human resources and Environmental Events at environmental divisions at individual Network Companies — with the aim of reinforcing Group-wide environmental education. Sony Sites In addition to environmental courses based on ISO14001 and The various Sony sites organize a variety of events to support mandatory courses for new employees, Sony introduced a new voluntary participation by employees in environmental conservation environmental training course for activities. management at Headquarters in the Sony Magnetic Products Co., Ltd. (SMPT, Thailand) solicits

Environmental Education and Support Programs latter half of fiscal 2000. Among environment-related proposals periodically, for example. It also other educational initiatives, designates annual environmental and safety weeks, during which it environmental issues have been hosts essay contests, environmental slogan and poster included in examinations for competitions and used material recycling contests. SMPT received promotion to assistant manager at the “PBEC Environmental Award” from the Pacific Basin Economic Headquarters. Council (PBEC) in March 2000 in recognition of the An environmental training course for accomplishments of its overall environmental activities. management at Sony Headquarters

Environmental Lectures

The various Sony sites invite environmental lecturers from both in- house and outside with extensive knowledge of environmental issues to address employees. Environmental lectures conducted at Sony Headquarters since they began in fiscal 1999 have been attended by more than 1,900 employees. Seminars concentrating An environment poster competition at on specific themes are also held for employees responsible for Sony Magnetic Products Co., Ltd. (Thailand) environmental activities.

44 Sony also makes an effort to raise awareness among Sony Regional Environmental Award employees by conducting exhibitions concerning the environment Established in various regions — Japan, the Americas, Europe and in general in-house conferences and exchange meetings. Asia — Regional Environmental Awards are given annually for In addition, Sony conducts original environmental programs that outstanding achievements in are not limited to employees but include their families as well. Sony regional environmental Electronics Inc. (America) has held an annual children’s picture conservation activities. contest since 1990, distributing the winning pictures to all Regional awards are employees on an “environmental calendar.” Sony of Canada, Sony presented by the chairmen of Manufacturing Company UK, Sony Hungary, Sony Slovakia, Sony the Regional Environmental Italia and others have conducted similar projects. Conservation Committees Sony Netherlands created a calendar with environmental following evaluation by the messages employing a coloring-book format and distributed it to all committees. employees in January 2001. The recipients with their Europe Environmental Award

Sony Environmental Award Initiated in 1994 to honor activities producing the most estimable An results among those selected in each region, the Environmental environmental Grand Prize is presented by Sony’s chairman and president. A calendar created by Sony Sony Environmental Conservation Committee Chairman Prize is An environmental exhibition at an Netherlands presented annually by the committee chairman for other superior European Service Conference (France) (Benelux) activities. To date, Environmental Grand Prizes have been presented for such accomplishments as the development of limonene polystyrene recycling technology (page 39), used TV disassembly and CRT recycling Environmental Fund System Environmental Education and Support Programs technology, chemical modification of Sony’s Strategy Committee for Environmental Technology with a waste polystyrene (see page 43) and membership of representatives from various Network Companies basic lead-free solder technology. In and research divisions serves as a forum for identifying key fiscal 2000, Construction of a System environmental technology focus areas to be addressed on a in Response to the Law for Recycling medium- and long-term basis. The committee is entrusted by the Specified Kinds of Home Appliances Sony Environmental Conservation Committee to organize a support was awarded the Environmental Grand fund to promote technology development in these key focus areas, Prize. (See pages 37/38.) with the R&D costs to be borne by Sony Headquarters. Similar environmental fund systems are also established by The Sony Environmental Award Network Companies. These fund systems have proved effective in All Sony Group activities throughout the world are also eligible for stimulating development of breakthrough technologies that the CEO Award, presented for the activities that contribute most to contribute to environmental conservation. enhancing Sony corporate value. The criteria for the CEO Award include environmental conservation activities, in addition to such areas as R&D and products. Among the results of fiscal 2000 activities, such environmentally conscious products as the DCR- Environmental Award Programs TRV30 Handycam were honored as outstanding achievements in environmental conservation. Sony has established two award programs — the Regional Environmental Award and the Sony Environmental Award — to (See page 33 for details concerning raise awareness among Sony Group employees of the need to the DCR-TRV30 Handycam) preserve the global environment and to give even greater stimulus to Sony’s environmental conservation activities.

Japan Environmental Award

Americas Environmental Award Sony Environmental Award Europe Environmental Award

Asia Handycam (DCR-TRV30) Environmental Award

45 Support System

Environmental Business Models

The Sony Environmental Vision positions the creation of business models that reduce global environmental impact and contribute positively to environmental conservation as one of its three driving forces. New systems being developed to stimulate Group member participation include incorporation of environmental measures into Network Company evaluation criteria, and incentive programs such as environmental award programs to positively recognize achievements in environmental protection. Among other efforts, Sony is striving to develop and launch new environmental businesses that can directly or indirectly reduce environmental impact, thereby contributing to conservation of the global environment.

Toward a Resource Recycling Consulting and Support Business for Business Model Environmental Management Systems Limonene recycling Many Sony Group sites have adopted environmental management business systems and acquired ISO14001 certification, and Sony has Sony’s pursuit of polystyrene launched new businesses that make the know-how Sony has foam recycling by limonene acquired in the process available to other companies. One of these, treatment (see page 39) is not Sony Facility Management, offers consultation on ISO-compliant confined to the Sony Group: system construction, training and seminars, and environmental Sony also promotes it as an monitoring procedures such as water quality analysis and work environmental business among environment assessment. other companies. Sony launched the business at a A limonene recycling plant (Japan) supermarket in Kochi Prefecture (Japan) in April 2001 with the goal of recycling 1,200 tons a year of polystyrene foam food packaging. New IT-based Business Operations Plans call for Limonene Recycling Systems to be operated at seven locations. Sony provides technical assistance through licensing of Sony is responding to the IT society by promoting the Orange Recycle Format, which comprises some patents, while business formats with lower environmental entrusting the plant impact. Examples include the development of a ■ Planned locations of limonene/ manufacturer with music distribution business based on state-of- polystyrene foam recycling plant the system of the-art network technology and the introduction production and of the Network Walkman as well as Sony’s sales. ongoing efforts to downsize packaging media such as CDs and MDs.

Omuta, Fukuoka Prefecture H50 model

Osaka, Osaka Prefecture H100 model

Environmental Business Models Date, Fukushima Prefecture H200 model Network Walkman Yatsushiro, Kumamoto Prefecture NW-MS9 H100 model Oyama, Tochigi Prefecture H100 model

Tanabe, Wakayama Prefecture Challenges for the Future H100 model Sony will explore possibilities for businesses employing its used- Kochi, Kochi Prefecture H300 model plastic identification system (see page 42), wastewater treatment agents and water-absorbing resin technologies. Sony will focus at *H100 models: 100 kg/h ability of recycling the same time on developing new IT and other products that promise to contribute to environmental impact reduction. Sony is Product Take-Back System in the United States considering the future introduction of a system to support As described before (see page 38), Sony has initiated a post individuals and teams in developing their ideas for new consumer electronic take-back system for Sony branded products environment-related business models. in the state of Minnesota in cooperation with the state and recycling In September 2000, Sony established a new function within and collection companies. Plans are to expand the program to Corporate Environmental Affairs to develop future environmental include other electronic product manufacturers, states and business models, and to actively promote their adoption. recyclers. This program will be made more cost effective through These measures are part of Sony’s search for uniquely Sony- the efficiency of scale, environmental product design, style business models that contribute to conservation of the global improvements in the collection systems and incorporation of post environment. consumer content in new products. Sony’s goal is to make this system sustainable as one of the business model.

Glossary Environmental business: Any business that supplies products or services with a low environmental impact, environmental preservation technologies or systems, or the like. 46 Environmental Communication

Sony considers disclosure of environmental information to be one of the most important aspects of corporate accountability. Sony’s fundamental stance is to release information 1) honestly, 2) fairly, 3) in a timely manner and 4) continuously. Sony employs five basic methods for information disclosure: 1) environmental reports (including site reports), 2) publicity, 3) advertising, 4) the internet homepage and 5) environmental showrooms.

Environmental Report and Site Reports Environmental Publicity and Advertising

Sony has published its corporate Environmental Report and Sony has maintained a policy of issuing distributed it widely since 1994. In addition, site-based periodic press releases and advertising to keep environmental reports, referred to as “site reports,” are created by stakeholders up-to-date on Sony’s individual sites to update the local environmental activities. The photo shows an community concerning their example of a newspaper advertisement environmental conservation activities. published in Japan. To view the contents in Forty-eight Sony sites are publishing site Japanese or English, please visit Sony’s reports as of the end of April 2001. These homepage. The various information reported environmental reports will also be posted includes back numbers of Sony’s press on Sony’s homepage and distributed in releases and advertisements. Sony also makes A newspaper ad placed CD-ROM format in North America. Site reports information on its environmental activities in The Nihon Keizai Shimbun newspaper on available to the public through interviews and January 30, 2001 lectures. Sony Eco Plaza

May 1999 saw the opening of the Sony Eco Plaza environmental Environmental Activities Homepage showroom on the first floor of Sony’s Headquarters building in Visit Sony’s environmental homepage, a site linked to Sony’s

Tokyo. Originally opened in 1995 as a venue for employee Environmental Communication corporate homepage, for information on education and environmental awareness enhancement, Sony Eco environmental activities and ISO14001 Plaza has been renovated into a showroom where visitors from the certification status and for up-to-date community can learn about Sony’s environmental conservation environmental reporting through such activities. Readers wishing to view and experience Sony’s new media as press releases as well as for back environmental technologies and environmentally conscious numbers of the Environmental Report in products are invited to pay a visit to Sony Eco Plaza. Japanese and English. The contents of some of the exhibits are also posted on Sony’s homepage for public viewing. URL (Japanese) http://www.sony.co.jp/eco/ The environmental homepage on Sony’s Inquiries concerning Sony Eco Plaza: (English) http://www.world.sony.com/eco/ Telephone: 81-3-5448-4455 corporate Web site Facsimile: 81-3-5448-2560 http://www.sony.co.jp/ecoplaza Communication with Non-Governmental As with the site reports Organizations (NGOs) employed by various sites to inform their A presentation material produced in the year 2000 by a Sony communities of their International (Europe) GmbH employee in response to a request by environmental an European industry association contained a passage that could conservation activities, be misconstrued with respect to the relations between Sony and many sites have certain environmental Non-Governmental Organizations (NGOs). established environmental The publication elicited a number of inquiries and criticisms from display corners where NGOs and other stakeholders. Sony respects the fact that each local residents can learn Sony Eco Plaza at Tokyo Headquarters NGO has its own perspectives and its own wealth of knowledge about their environmental conservation activities. An environmental and information concerning environmental issues. Sony showroom at Environmental Center Europe in Germany employs immediately held a meeting with the environmental NGOs modular posters that can be moved to other European sites. concerned in Europe. Meanwhile, Sony is pursuing ongoing efforts The public is also invited to view Sony’s environmental activities to communicate in Japan and the United States by publishing upon application at Sony Tower in Osaka in Japan. Sony’s perspectives on its homepage and elsewhere as well as by responding directly to inquiries. Sony continues to work for good Inquiries concerning Sony Tower: communication and relations with stakeholders as Sony aims to Telephone: 81-6-6251-2403 Facsimile: 81-6-6251-2433 realize a sustainable society.

Glossary Stakeholders: In Sony's view, customers, shareholders, investors, business clients, government, the mass media, research organs, NGOs, local communities and employees are all important stakeholders. NGOs: Non-Governmental Organizations 47 Support Systems

Risk Management System and Environmental Auditing

Sony conducts a multifaceted auditing system to ensure the effective operation of its Environmental Management System and prevent environmental accidents. The Sony Environmental Vision regards risk management as a crucial task for realization of an environmentally sustainable society. It expresses a commitment to implementing an environmental risk management system and to promoting ongoing communication concerning risk with stakeholders. The highest priority is placed on preventing environmental accidents, especially during the production process. This has given birth to numerous programs at Sony sites worldwide.

Environmental Auditing Framework prohibiting new construction for unshielded underground burial of tanks and requiring dike and leakage prevention facility installation, Sony has implemented investigations by the certifying body for for example. They also provide for written procedures, education ISO14001, the international standards for Environmental and training software countermeasures, in addition to standards for Management Systems, as well as a self-checking system of internal emergency communications. The guidelines enable sites to environmental audits at the sites. Meanwhile, the individual sites evaluate the relative magnitude of their environmental risks by conduct environmental risk assessment, and the Regional conducting self-assessments. In addition, the Regional Environmental Conservation Committees implement special audits Environmental Conservation Committees conduct audits of high- for those sites with high environmental risk. risk sites and recommend effective counter measures to the risks. Examples of effective environmental risk avoidance are posted on the internal homepage, moreover, to permit Group-wide sharing. ■ The Framework for Sony's Environmental Audits

Special audit Surveillance Aboveground Oil Storage Tank Installation audit by Tanks and pipelines deteriorate over a long period of time, raising Internal audits ISO14001 at sites the possibility of hazardous materials’ leakage. At Sony EMCS Regional certification Minokamo TEC, heavy oil storage tanks are installed aboveground Environmental authorities to avoid ground pollution should a leak occur. Conservation Committee Audit Environmental Auditing Risk Management System and

Environmental Auditing and Risk Management System on Sites

Prevention of chemical substances accidents due to chemical leaks or other causes, and creation and implementation of systems to minimize damage should any such accident occur, are top priorities for Sony. Almost all Sony manufacturing sites have obtained Heavy oil storage tanks installed aboveground ISO14001 environmental management system certification and at Sony EMCS Corporation Minokamo TEC (Japan) have endeavored to reduce the risk of environmental accidents through internal audits. Since Sony considers it difficult to grasp potential environmental risks at sites by these means alone, however, Sony established a common set of Guidelines for the Environmental Risk Management in February 2000 as a framework within which all Sony Group sites can conduct their own assessments to measure environmental risks quantitatively. The guidelines prescribe hardware countermeasures —

48 Double Chemical Substances Rainwater Treatment Transportation Pipelines In order to prevent the risk of hazardous materials contaminating Sony Semiconductor Company of America and other the ground and being washed into a nearby stream by rainwater, semiconductor sites use double pipelines to prevent chemical ST LCD, a maker of LCD units, has modified its rainwater gutters to substances from escaping, even if a pipe joint should spring a leak create a system that catches rainwater that may pick up during transportation. The name of the chemical contained is contaminants and treats them. The system also employs retaining written clearly on every pipe, each of which is also color-coded for basins for temporary storage of the rainwater until it has been easy identification of its contents. checked for contamination and treated.

A rainwater gutter at the ST LCD plant A retaining basin for temporary rainwater (Japan) storage at the ST LCD plant (Japan)

Pipelines at Sony Semiconductor Company of America Emergency Training Exercises

Sony Display Device Environmental Auditing Risk Management System and (Singapore) conducts regular Environmental Accounting in drills to train employees to Risk Management System respond promptly — erecting In fiscal 2000, Sony made expenditures of approximately 180 oil fences and removing million yen worldwide for management of a variety of risks. chemical substances with Sony calculates the risk avoidance effect of these costs based on absorption mats — if its Guidelines for the Environmental Risk Management. Because hazardous materials leaks calculations have not yet been conducted at all sites, the figures should occur during the Emergency training exercise at Sony Display reported here cover 42 sites in fiscal 2000. Sony calculates the risk cathode ray tube production Device (Singapore) avoidance effect for the current fiscal year by subtracting the total process. scores for the period, after the implementation of environmental conservation measures, from the total risk scores the sites could Countermeasures for Small Storage Containers have had if no risk avoidance measures had been implemented. The result is then converted to yen using a coefficient obtained At Sony France DAX, receptacles are placed under small storage from calculations based on empirical figures for environmental containers to prevent chemical substances from spreading to accidents occurring at Sony sites in the past. surrounding areas in case of chemical leaks. The risk avoidance effect in fiscal 2000 totaled some 289 million yen.

■ Environmental Accounting of Environmental Risk Avoidance Effect Environmental risk countermeasure costs 181 Million yen Environmental risk scores (total) 296 Points Environmental risk scores if no countermeasures had been implemented 624 Points Environmental risk avoidance effect 328 Points Environmental risk converted to yen 289 Million yen *Risk scores are computed based on the Sony Guidelines for the Environmental Risk Management. Countermeasures for small storage containers *The monetary conversion coefficient (1 point = 880,000 yen) is calculated based on at Sony France DAX environmental incidents occurring at Sony sites in the past. *Figures are for 42 sites.

49 Support Systems

Occupational Health & Safety and Disaster Prevention

Sony participates in global activities aimed at protecting the health and safety of its employees and reinforcing its fire and disaster prevention preparedness in conjunction with environmental conservation activities.

Establishment of Sony’s Global Policy on suited to regional conditions, publishing internal bulletins to share information and administering conferences. These responsibilities Occupational Health and Safety are in addition to auditing, which is described below. In light of the close relationship between OH&S and disaster In February 1998, Sony moved with the approval of the president to prevention and environmental conservation activities, the introduce a new global policy, “Sony’s Global Policy on Occupational organization is structured to promote cooperation between the two Health and Safety.” Aimed at unifying the worldwide Group's health areas of concern. and safety activities, the policy defines employee health and safety as an integral part of all business operations. It obliges all global sites 1) to do more than required by law; 2) to adopt a Plan, Do, Check, Act (PDCA) cycle in conformity with the British BS8800 Occupational Health and Safety Standard; and 3) to take a proactive approach to OH&S Auditing occupational injury risk reduction. Sony considers periodic audits essential to assuring compliance with laws and regulations regarding OH&S and disaster prevention Sony’s Global Policy on Occupational Health and Safety and enforcing the Sony’s Global Policy on Occupational Health and Sony recognizes that occupational health and safety (OH&S) is an integral part of all business Safety. The regional offices currently perform periodic OH&S and operations. Sony therefore secures a safe and healthy working environment for its employees. To achieve this, the following policy has been adopted. This policy applies to all Sony Group disaster prevention audits in their respective regions, maintaining a companies and organizations throughout the world. pace with the environmental audits.

1) To observe all local OH&S-related laws, regulations and agreements, and to establish independent standards to improve management ability of OH&S to practice OH&S activities more than just what the laws require. Promoting the Occupational 2) To establish and maintain an appropriate organizational structure that clearly defines responsibility for promoting OH&S activities in all Sony Group companies and organizations. Health and Safety Management System 3) To perform an OH&S risk assessment to evaluate potential dangers and hazards with a proactive science based analysis in all areas of operation. Sony believes that periodic third- 4) To respect the voice of employees with the recognition that their health and safety is ensured party assessments are by good communication between employer and employee. 5) To conduct effective OH&S training to all Sony employees, and to exchange information with necessary to achieve continuous outside companies performing services on Sony locations in order to secure OH&S. improvement in OH&S and 6) To undertake internal promotion and information activities to enhance safety awareness. disaster prevention — and that 7) To undertake periodic OH&S audits and endeavor to improve the OH&S management risk assessment based on an system. 8) To participate in public OH&S activities of both government and the local community. OH&S management system

and Disaster Prevention 9) To develop and introduce new methods and technologies for protecting the OH&S of (OHSMS) such as BS8800 and employees. OHSAS18001 can be effective An OHSMS certification audit of

Occupational Health & Safety Sony Electronics of Korea 10)To invest relevant capital in enforcing this policy, and to undertake continuous improvement for injury and health risk of the OH&S management system. reduction. Approved by N. Idei All manufacturing sites in Japan and Asia are consequently encouraged to acquire OHSMS certification. As of fiscal 2000 year-end, 25 sites in the Sony Occupational Health & Safety and Group were OHSMS certified. Disaster Prevention Organizations Sony works to reduce injury and health risks proactively while An OHSMS certification audit at The implementation of this global policy was followed in October promoting organic integration Sony France DAX 1999 by the issuance of the “Sony Global OH&S Management with the ISO14001-based Structure Standard.” This companion standard provides an environmental management organizational framework for worldwide pursuit of relevant system. activities. It designates the Sony Global OH&S Committee as the organization responsible for global decision-making and review, and establishes regional offices in Japan, the Americas, An OHSMS certification audit at the Europe and Asia, respectively. Sendai Technology Center (Japan) They undertake such tasks as Sony Global OH&S Committee meeting establishing control guidelines

Glossary PDCA cycle (system): A Plan, Do, Check, and Act management cycle based on ISO14001. 50 Machine Safety Management Anti-earthquake Measures

Anticipating a trend toward enforcement of the ISO12100 The location of Sony’s headquarters in earthquake-prone Japan international machine safety management standard, Sony has led to the positioning of anti-earthquake measures as a key introduced the “Sony Machine Safety Global Guidelines” in March aspect of risk management. 2001. The purpose of these guidelines is to reduce the OH&S- These measures cover a diverse range, from earthquake-proofing related risk posed by production machinery by clearly defining the buildings by reinforcing them, to establishing systems to verify safety responsibilities of machine suppliers and users and employee safety in the aftermath specifying the regulations each is required to observe. of a strong quake. Preparations for quick responses to earthquake emergencies and Injury Statistics Data Collection rapid restoration of functions include formation of the Sony In the future, Sony will employ global tracking of data concerning Emergency Headquarters, a body such matters as transitions in the occurrence of workplace headed by a corporate officer accidents and days lost due to injuries and ill-health, accompanied with responsibility for emergency A comprehensive disaster drill conducted by analysis of the data to formulate appropriate strategies for response, and periodic on the assumption that a major reducing work-related accident risk. Sony will also disclose OH&S earthquake drills. earthquake had struck Tokyo performance information to stakeholders as one of the key aspects of corporate accountability. Sony has already compiled regional injury statistics data in Japan Internal Communication Concerning and the Americas and has begun compiling injury occurrence data Occupational Health & Safety and Disaster on a worldwide basis in fiscal 2001. Prevention

Sony promotes Group-wide OH&S and disaster prevention Participation in Local Community Activities knowledge sharing by publishing a periodical internal bulletin and communicating relevant information on Sony’s intranet homepage. Sony’s Global Policy on Occupational Health and Safety promotes The internal bulletin reports on accidents, injuries and health problems

participation by Group companies in local community OH&S and Disaster Prevention Occupational Health & Safety programs whenever possible. It also encourages their positive occurring within involvement in national and local programs for occupational injury the Sony Group in risk reduction. line with the goals of reducing risk through knowledge sharing and of preventing recurrences of Intranet homepage accidents or injuries.

An emergency drill at Sony Magnetic Internal English-language Products Inc. of America. SMPA bulletin received Voluntary Protection Program certification from the U.S. Occupational Safety and Health Administration Emergency Communications (OSHA) in 2000. The Sony Manufacturing Company Pencoed Network Upgrading plant (UK) was honored with the Royal Safety Award in May 1999. Sony upgraded the Sony emergency communications network and created a global organizational structure for Sony’s OH&S and disaster prevention. Sony has constructed a system for relaying Fire Risk Survey Program news to Sony Headquarters from the relevant regional offices, day or night, whenever a A non-life insurance company with which Sony maintains a contract fatal occupational Occurrence of deadly disaster carries out periodic investigations of Sony sites to determine fire Fire/explosion accident, fire, Environmental accident insurance premiums. Since 1999, Sony has conducted fire risk explosion or Natural disaster surveys at manufacturing sites (in Japan, Europe and Asia) in environmental European office Emergency fax to Headquarters conjunction with the insurance company’s investigations. accident occurs. The Americas office The assessments employ a fire prevention checklist generated in- system is designed Asian office house to convert fire risk into numerical data for inter-operational to support delay-free benchmarking. Their objectives are to enhance fire prevention risk management in awareness among the sites and to lay the groundwork for future fire emergencies. risk reduction as well as to facilitate sharing of fire prevention knowledge among Group companies. Sony’s global emergency communication network

Glossary Stakeholder: In Sony's view, customers, shareholders, investors, business clients, government, the mass media, research organs, NGOs, local communities and employees are all important stakeholders. Benchmark: A measurement standard/index usually investigated and set through comparisons with competitors’ products. 51 Support Systems

Community Relations Activities

In its fundamental commitment to coexisting with regional and international society as a good corporate citizenship, Sony develops unique activities to “create and realize the dreams” of the local communities in which it operates. Sony’s community activities extend into many fields ranging from education, art and culture to welfare, human development and international relations. Community activities related to environmental conservation are also promoted actively and globally.

“SOMEONE NEEDS YOU Project” Sony Educational Promotion Projects

In a particularly large-scale volunteerism promotion project Sony Group companies in Malaysia joined forces to conduct an involving Sony Group employees worldwide carried out since fiscal Educational Promotion Project, the Sony Science Education 2000, the Sony Group conducted an event of global proportions Awards (SSEA), with support from Malaysia’s Ministry of Education, bearing the shared message “SOMEONE NEEDS YOU,” for which to promote intellectual curiosity and scientific education among the SONY name is an acronym. A total of Malaysian children and train young people for scientific 24,000 Sony employees from 20 countries development in the 21st century. To commemorate the program’s performed volunteer activities such as introduction, “Scientific Solutions for the Environment” was community cleanups and wilderness selected as the first year’s theme. A total of 267 schools from preservation projects as part of the event. throughout Malaysia participated, with the winning schools receiving prizes of Sony educational equipment. Sony Gulf in the United Arab Emirates, meanwhile, has established the Sony Gulf Environmental Award with the support of the United Arab Environmental Ministry to promote scientific study and creative thinking in the area of environmental Sony Electronics Inc. (America) Staff of Sony UK set up conservation. Sony employees clean a beach. birdhouses in a wildlife preservation project. Vietnam has introduced a similar program known as Sony Group Tree-planting and the Sony Green Discovery Afforestation Activities Award. The award ceremony for the Sony Science Education Awards (SSEA) by Sony Group Members of the Sony Group are companies in Malaysia participating in tree-planting and Helping Elementary School Children afforestation projects around the world. In March 2001, for example, Make Their School Environmentally Sound some 120 employees of Sony Working in cooperation with the Sony Foundation for Science Community Relations Activities Corporation of Hong Kong Ltd. and Education, Sony promoted the concrete activities of a group of their families responded to an appeal elementary school children to make their school environmentally by the Hong Kong government to sound on their own initiative. From fiscal 1999 to fiscal 2000, plant trees in Pak Tam Chung Sony Corporation of Hong Kong employees taking part in a tree- students at the Chuo Country Park. planting project Elementary School in Sagamihara, Kanagawa “Sony Forest” Welcoming the Prefecture (Japan), Local Community researched their school’s environmental impact on Sony EMCS Kohda TEC in Aichi Prefecture (Japan) maintains a the surrounding natural forest of approximately 6.5 hectares that is open to the community, considered public. Known as the Sony Forest, it is intended to serve as an ways of dealing with it and “open park factory” where people from the community can summed up their commune with nature. environmental awareness in An environmental awareness declaration The forest employs artificial wood made from plastic waste as a “Globally Sound Children created by elementary school children (Japan) logs and safety fencing. Sony EMCS Kohda TEC’s activities in such Declaration.” areas as greenification and Please see Sony’s Community Relations Report for more community activation have information about community relations activities. received a positive reception, earning the company the 2000 Inquiries concerning community relations activities: Prime Minister’s Commendations Sony Corporation, Corporate Community Relations for Outstanding Contributions to Telephone: 81-3-5448-2355 the National Greening Campaign. Facsimile: 81-3-5448-3229 Participants in a track meet in “Sony http://www.sony.co.jp/en/cr Forest” at Sony EMCS Kohda TEC (Japan)

52 ata Environmental Data Collection DSony collects environmental performance and cost data on a global basis according to its original guidelines for Data Collection and Environmental Accounting. The introduction in fiscal 2000 of the “ecos” on-line data collection system has facilitated prompt environmental data gathering from all sites including Group companies in Japan, as well as information sharing. Sony will make the most of this system to achieve more timely disclosures of environmental information and more efficient management of environmental performance. In the future, Sony will develop a global system for on-line data collection to support centralized management by the Corporate Environmental Affairs at Headquarters with the aim of sharing environmental performance data among all divisions responsible for environmental affairs. The data for fiscal 2000 (April 2000-March 2001) compiled in this databook are, as a rule, from sites around the world (Japan, the Americas except South America, Europe, Asia including Oceania and China) that had acquired ISO14001 certification as of fiscal 1999 year-end.

Environmental Accounting Energy Water Chemical Substances Waste Products Data at a Glance Environmental Performance Data ISO14001 Certification Status Occupational Health and Safety Management System Certification Status External Awards History of Environmental Activities and OH&S Data

Environmental Accounting

Sony has also established environmental accounting systems at sites around the world to direct business resources efficiently and effectively toward environmental conservation activities. Sony’s environmental accounting for fiscal 2000 identifies environmental conservation costs as well as their effectiveness throughout the life-cycle, from business planning and energy and resources procurement to product use and recycling. The compilation of total environmental conservation cost data has been expanded to include the Americas and China, for which data were not previously compiled. There are some sites for which data has not been collected. The effectiveness of Sony’s environmental conservation efforts is expressed in terms of materials, an (eco-efficiency) index and monetary values to show the reduction in environmental impact more clearly. In determining the effectiveness, moreover, Sony has tried to calculate not only the environmental impact stemming directly from Sony Group operations but also that arising from the use of Sony products (social costs) wherever possible. The results of Sony’s environmental accounting are shown as accurately as possible below, although some figures are necessarily estimates while others are actual calculations.

Environmental Conservation Costs Environmental Conservation Cost (Million yen) Classification Primary Measures Investment Expenses

Energy and resources conservation of products. 7,369 Environmental conservation cost for _ product design and product recycling Recycling of container and packaging, batteries, etc. 221

Pollution prevention Air pollution prevention 887 1,473 Water pollution prevention 2,130 2,933 Soil and ground-water pollution prevention 140 170 Noise and vibration prevention 13 195 Odor and subsidence prevention 10 47 Others 23 188 Subtotal 3,202 5,006 Environmental conservation cost for manufacturing and service activities Reduction of environmental impact Energy conservation 866 1,194 Resources conservation (including waste disposal, 342 3,891 recycling and usage reduction) Reduction of water consumption 321 173 Reduction of hazardous materials 470 433 Others 32 151 Subtotal 2,031 5,842 Green purchasing 3 48 Environmental management ISO14001 certification acquisition 9 141 Operation of environmental management organizations 154 3,434 Environmental education and employee awareness 8 165 activities Others 0 107 Environmental conservation cost for Subtotal 171 3,847 management activities Risk management system Education, training and drills focused on 18 111 environmental risk management Restoration costs and expenditures following 2 1 environmental pollution legal cases Others 41 68 Subtotal 61 181

Environmental Accounting Communication and social contributions Issuing of site reports 0 33 PRTR-related costs 0 11 Environmental conservation cost for social activities Community-based environmental contributions, 27 171 greenification, etc. Others 2 13 Subtotal 29 228 Total 5,497 22,742

54 Environmental Conservation Effect

Environmental Impact Environmental Conservation Effect Monetary Conversion of Environmental Main Environmental FY1999 Eco-efficiency*3 Conservation Effect Category FY1999 Materials Effect Conservation Effect Items (Adjusted FY2000 (Reference) (Achieved value) Volume Base (Comparison (Million yen)*4 computed value)*2 with FY1999) Energy conservation*1 Environmental conservation (CO2 conversion of 7,447,020 (ton-CO2) (8,323,450)(ton-CO2) 8,118,537 (ton-CO2) 204,913 (ton-CO2)→ 1.03 2,869 effect in use and end of life energy consumed in product use) product Resource conservation*1 1,039,740 (tons) (1,162,106) (tons) 1,076,862 (tons) 85,244 (tons) 1.08 9,206 (product weight) → Energy conservation (CO2 conversion of energy 1,548,904 (ton-CO2) (1,731,192)(ton-CO2) 1,638,702 (ton-CO2) 92,490 (ton-CO2)→ 1.06 1,295 consumed by sites) Resource conservation 58,810 (tons) (65,732) (tons) 61,116 (tons) 4,616 (tons) 1.08 498 (quantity of waste from sites) → Environmental conservation Reduction of water (volume of (Thousand (Thousand (Thousand (Thousand 27,955 (31,245) 28,619 4,216 919 effect in manufacturing and water consumption by sites) km3) km3) km3) km3) service activities Reduction of environmental risk at sites*5 (624) (points) 296 (points) 328 (points) 289 (Sony risk assessment score) Reduction of hazardous materials*6 Class II substances 51 (tons) (57) (tons) 65 (tons) -9 (tons) -6,173 Class III substances 11,222 (tons) (12,542) (tons) 10,034 (tons) 2,509 (tons) 3,512 Class IV substances 28,824 (tons) (32,216) (tons) 27,365 (tons) 4,851 (tons) 6,791 Total 19,206

Reduced Costs and Profits on Sales in *In comparisons between fiscal years, the spheres of data subject to comparison are unified (Million yen) for the fiscal years being compared. Manufacturing and Service Activities *The environmental conservation effect includes social cost reductions. *1) A product’s environmental conservation effect is the total impact exerted by the number Energy conservation-related 748 of products planned for manufacture during their life cycle. The products considered are final products and do not include OEM supplies. The numeric values are approximate, Resource (water) conservation-related 122 partly including estimated or anticipated values. *2) The environmental impact in FY1999 was adjusted by the equation below to facilitate Resource (paper and others) conservation-related 183 comparison with FY2000. Waste reduction 303 FY1999 (Adjusted computed value) = Environmental performance in FY1999 x Sales in FY2000 ÷ Sales in FY1999 Profit on sale of securities 1,135 The sales amount employs the total value for such business segments as electronics, games and music, considering the actual situation of environmental impact generation. Others 43 *3) Eco-efficiency = Sales amount in fiscal year concerned/Environmental performance in fiscal year concerned *4) The coefficient below is employed for monetary conversion of the environmental conservation effect. Energy conservation = 14,000 yen/ton-CO2 Average value given by the Active Implemented Jointly (AIJ) Project conducted based on the United Nations Framework Convention on Climate Change. Resources conservation = 108 yen/kg Value computed from the cost of waste treatment and recycling. Water 350 yen/m3 Computed from the averaged value of both waterworks and drainage costs. Reduction of hazardous materials = Class II: 700,000 yen/kg Class III/ Class IV: 1,400 yen/kg Computed based on Sony’s Guideline for Environmental Risk Management. Improvement in environmental risk assessment 1 point = 880,000 yen Calculated based on environmental accidents occurring at Sony sites in the past. *5) The risk score for FY1999 represents the score when no measures had been taken. *6) Refer to page 57 for a classification of hazardous materials. Costs incurred for environmental conservation activities in fiscal 2000 involved investment of 5,497 million yen and expenses of 22,742 million yen. These comprised the following: environmental conservation cost for product design and product recycling; environmental conservation cost for production and service activities; environmental management activity cost; and environment-related social activity cost. In fiscal 2000

Sony included environmental conservation costs in product design and product recycling for the first time, albeit on a trial calculation basis. Environmental Accounting This resulted in a significant increase in expenses as compared with the 11,986 million yen recorded in fiscal 1999. The effectiveness of environmental conservation efforts is determined based on improvement from the fiscal 1999 level as a result of cost investment. To eliminate variations due to fluctuations in business scale, fiscal 1999 environmental impact was adjusted to the scale of fiscal 2000 sales for purposes of calculation (see *2). Sony’s energy and resources consumption increased from fiscal 1999 in terms of absolute volume in fiscal 2000. Nevertheless, global investment of environmental conservation costs led to the following environmental effects after adjustment to matching sales: a reduction to the equivalent of 204,913 ton-CO2—the amount of energy consumed during product use converted to CO2—with a rise in eco-efficiency of 1.03 times, and a reduction of 85,244 tons in terms of product weight as resources, with an improvement in eco-efficiency of 1.08 times. As for the environmental conservation effect in the areas of production and service activities, energy use by sites decreased in an amount equivalent to 92,490 ton-CO2, with eco-efficiency growing by 1.06 times. Waste generated by sites as resources was reduced by 4,616 tons, and eco- efficiency rose by 1.08 times. Sony intends to deploy environmental accounting fully as an effective evaluation tool in order to improve eco-efficiency by 1.5 times (as compared to fiscal 2000) by fiscal 2005. Although fiscal 2000 figures are provided for reference purposes only, Sony has also presented the environmental effect in terms of monetary values, converted using estimated figures and a conversion coefficient. Estimates are included at this stage, but Sony plans to improve the usefulness of these data as a tool for environmental management promotion by converting them into monetary values as well as into volume data for energy and resources.

55 Data

Energy

Status of Energy Use

The volume of energy consumed by Sony during fiscal 2000 amounted to the equivalent of 40,300 terajoules in terms of calories, or the equivalent of 1,638,702 tons in terms of CO2. The geographic breakdown of consumption shows that sites in Japan consumed the most energy, followed by those in the Americas, Asia/China and Europe, in that order. Energy consumption in Japan rose by 11%, primarily a result of the startup of an LCD-related facility and the initiation of full-scale operation by a semiconductor plant in Nagasaki Prefecture (Japan) during fiscal 2000. In the Asia/China region, the launch of CRT production facilities in Shanghai, China, raised region-wide energy consumption by 18% from the previous year. Sony’s European sites recorded an increase of 20%, the result of a change in recording practices to take energy consumption by non-manufacturing sites into account for the first time. Every effort is and will be made to maximize energy savings at all new production facilities by incorporating energy planning as early as the design stage and by investing in ice thermal-storage and other highly energy-efficient systems. In addition, conferences are held for the personnel responsible for energy conservation activities at each site on a day-to-day basis. Besides presenting best practices to encourage further energy conservation efforts by the participants, the conferences provide an opportunity to share information and ideas among Sony Group sites.

■ Energy Consumption (calories equivalent) Terajoules 25,000 18,343 22,084 17,056 20,000 19,840 18,192 13,513 15,000 13,939 12,786 9,166 10,000 9,278 5,504 4,010 5,278 3,636 2,416 2,858 5,000 4,039 4,475 2,753 3,018 0 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 FY JapanAmericas Europe Asia/China

Electricity Gas Oil Water

Status of Water Use

The volume of water consumed by Sony during fiscal 2000 amounted 28,619,000 m3, 3% reduction from the previous year. Among the Group sites, manufacturing facilities producing semiconductors, CRTs and printed wiring boards consume the most water. Despite the start of full operations by an LCD-related facility and a semiconductor plant in Nagasaki Prefecture (Japan), Sony reduced net water consumption by 200,000 m3 by reinforcing management, including improvement of the collection rate for water used in washing, promotion of reuse of water and optimization of the pump-circulated water volume in Japan. In the Asia/China region, meanwhile, a significant increase in CRT production by the plant in Shanghai raised overall water consumption by 44% from the previous year.

■ Water Consumption Energy / Water Million m3 15 14.4 13.8 14.1 12.713.0 12

9 7.8 6.9 5.7 5.8 6 5.0 4.9 4.2 3.9 3.8 3.6 3.2 3.4 3 2.6 2.8 1.7

0 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 FY JapanAmericas Europe Asia/China

56 Chemical Substances

Status of Hazardous Materials Use

The Sony Group classifies the chemical substances used in production into four categories according to the degree of hazard they may pose to people and the environment. Hazardous materials are managed in accordance with standards established for each group. Class I substances are prohibited; Class II substances were scheduled for phasing out by fiscal 2005 year-end; Class III substances to be significantly reduced on concrete targets; and Class IV substances will continue to be carefully supervised and controlled. Almost all manufacturing sites had obtained ISO14001 certification in fiscal 2000. In fiscal 2000, almost all manufacturing sites had acquired ISO14001 certification, and they are all promoting a reduction program for these hazardous materials as well as management to prevent pollution, aiming at the targets of Sony’s Mid-Term Environmental Action Program Green Management 2002 and Green Management 2005. * Consumption amount: The amount remaining after subtraction of the amount sold for purpose of recycling from the amount purchased.

■ Class I to IV Substances

Chlorine Solvents • 1,2-Dichloroethylene Ozone-Depleting Substances Carcinogenic Substances • Carbon tetrachloride • Methylene chloride • CFC (non-refrigerant) • Asbestos • 1,1,1-Trichloroethane • Chloroform • HCFC (non-refrigerant) • Vinyl chloride monomer Class I • 1,1,2-Trichloroethane • Trichloroethylene • Methyl bromide • PCB Prohibited • 1,2-Dichloroethane • Tetrachloroethylene • Benzene Substances • 1,1-Dichloroethylene Heavy Metal Compounds • Cadmium and its compounds • Mercury and its compounds

Substances Harmful to Endocrine Disruptors Ozone-Depleting Substances Heavy Metal Compounds Class II Reproductive Functions • Dioxin (substance • Halon • Lead solder Phased out • Methyl cellosolve / acetate generated unintentionally) • CFC (used as refrigerant in Substances • Ethyl cellosolve / acetate freezers launched before 1980)

VOCs Heavy Metal Compounds Greenhouse Substances Air Pollutants • Methanol • Chromium (VI) compounds • PFC (PRTR controlled) • NOX • IPA • Lead and its compounds • Sulfur hexafluoride • SOX • MEK • Antimony and its compounds • HFC • n-Hexane • Arsenic and its compounds • N2O • Toluene • Nickel compounds Toxic and Deleterious Class III • Xylene • Zinc compounds Reduction Substances Substances • Ethyl acetate • Cobalt and its compounds • Chlorine • Butyl acetate • Manganese and its • Formaldehyde compounds • Hydrofluoric acid Other substances controlled under the PRTR system in individual countries

• Acetone • Substances for treating effluent • CFC (used as refrigerant in • Cyclohexanone (such as flocculating agents and freezers launched after 1981) Class IV • Ammonia precipitants) • HCFC (refrigerant) Control • Acids and alkalies • BOD • HFC (refrigerant) Substances • COD

* Substances controlled by laws and regulations in individual countries.

Class I and Class II Substances (to be phased out from production by the end of fiscal 2005) Chemical Substances Among the prohibited hazardous materials, the Group still uses methylene chloride for surface treatment of metals. Trace amounts of ■ Class II Substances mercury are also in use in airtight conditions. Among Class I substances, Tons although already prohibited, tetrachloroethylene and dichloroethylene are 120 111.60 still in use on a limited basis, moreover, due to the unavailability of 100 substitutes. During fiscal 2000, the consumption of tetrachloroethylene 80 66.00 65.10 and dichloroethylene amounted to 1.7 tons and eight kilograms, 60 29.00 22.00 43.30 respectively. Beginning in fiscal 2001, however, the former is completely 40 32.00 prohibited, while the latter is scheduled to be replaced by an alternative 19.70 20 7.40 0.81 0.00 0.00 0.00 substance with lower environmental impact in fiscal 2001. 0.32 0.50 0.04 0.00 0.25 0.00 0.00 0 The use of methylene chloride, a degreasing agent employed for metal 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 FY JapanAmericas Europe Asia/China components, increased in the Asian region. Plans are in place, however, to eliminate work processes involving the use of methylene chloride by the early part of fiscal 2001. Mercury consumption, meanwhile, declined by 52% from the previous year to 299 kilograms. Note: The chart contains no data for Class I substances due to their virtual elimination.

57 Data

Class III Substances (to be reduced based on concrete targets)

Substances targeted for reductions include volatile organic compounds (VOCs) such as isopropyl alcohol, methyl ethyl ketone and toluene as ■ Class III Substances well as heavy metals such as lead contained in solder. Tons 10,000 8,089 During fiscal 2000, Sony successfully reduced the volume of VOCs by 8,000 7,753 6,219 21%, while the amount of lead was cut by 14% from the previous year, 6,166 6,000 4,945 largely through product downsizing, a shift to reflow soldering and the 3,328 2,882 4,000 adoption of lead-free soldering processes. Sony will continue to 2,502 3,315 2,578 1,015 concentrate on programs to switch to substitute compounds and 2,000 1,600 1,012 1,175 otherwise reduce the volume of Class III substances used. 733 937 865 686 726 823 0 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 FY JapanAmericas Europe Asia/China

Class IV Substances (to be supervised and controlled)

Some chemical substances that are not covered by classes I to III above are often subject to regulation. Many of these, including ethyl alcohol, ■ Class IV Substances some acids, alkalies and metal chlorides, fall into this class. Tons 20,000 19,099 12,778 In fiscal 2000, virtually every site obtained ISO14001 certification in 17,306 13,937 Japan. At the same time, Sony carried out a variety of environmental 15,000 14,145 12,654

programs aimed at reducing the volume of the substances used, 10,999 10,000 inventories, and increasing recycling. 6,672 7,086 Beginning in fiscal 2000, hazardous materials used in the manufacture 5,225 5,000 2,301 2,629 2,724 of CDs and other recording media are fully accounted for in the report. 2,531 2,376 2,219 796 334 763 390 0 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 FY JapanAmericas Europe Asia/China Summary of Sony’s Fiscal 2000 PRTR Assessment Survey Reports (Japan)

Since fiscal 1997 Sony has carried out Pollutant Release and Transfer Register (PRTR) surveys concerning the 179 substances designated by the Japanese electronics and electrical machinery industry. The PRTR law implemented in March 2000 designates 354 chemical substances as Type I chemical substances. The volumes of these substances released or transferred must be reported to the authorities. Sony uses 35 of the chemical substances designated Type I, and this report focuses on the 29 substances in this category employed with a consumption volume exceeding 0.1 tons. The volume released into the air, water and soil and the volume transferred as waste components amounted to 442 tons. The substances released consisted mainly of organic solvents such as toluene (240 tons) and ethylene glycol (56 tons). Although they are classified in the “transferred” category as waste, virtually all such compounds underwent thermal recycling and other recycling processes in an effort to ensure effective resources utilization. *The data for chemical compounds containing lead are based partially on estimates provided by some sites for March, 2001. *The volumes of metal compounds are stated in metal equivalents. (Calculation is based on coefficients for each metal stipulated in the PRTR Guideline for the Japanese electronics and electrical machinery industry.) ■ Breakdown of substances used and

their respective volumes (Japan) (Tons)

SubstanceSubstance VolumeEmitted Volume Consumed Properly Recycled ■ Summary of Sony No. handled transferred treated PRTR Assessment Survey Results 3 Acrylic acid 25.6 0.1 1.9 15.4 8.2 0.1 (Japan) 16 Monoethanolamine 6.1 0.0 6.0 0.0 0.1 0.0 (Tons) 25 Antimony and its compounds 19.8 0.0 1.9 15.5 0.0 0.0 43 Ethylene glycol 56.6 0.2 55.6 0.0 0.9 0.0 44 Ethyl glycol 0.4 0.4 0.0 0.0 0.0 0.0 Emitted 63 Xylene 77.2 17.1 4.9 26.1 26.7 2.4 80 (1%) Volume transferred 64 Silver and its water-soluble compounds 0.7 0.0 0.1 0.5 0.0 0.2 68 Chrome and trivalent chrome compounds 4.3 0.2 2.4 0.0 0.4 1.3 361 (6%) 100 Cobalt and its compounds 678.2 0.0 40.3 502.4 0.0 135.5 102 Vinyl acetate 38 0.0 2.6 1.0 0.0 0.2 109 2-(Diethylamino)ethanol 16.2 0.0 15.9 0.0 0.3 0.0 175 Mercury and its compounds 0.4 0.0 0.0 0.3 0.0 0.1 Consumed 200 Tetrachloroethylene 2.0 0.7 0.9 0.0 0.0 0.5

Chemical Substances Recycled 207 Copper water-soluble salts 0.6 0.0 0.0 0.0 0.0 0.6 2,175 (36%) 1,244 (21%) (excluding complex salt) 227 Toluene 4,677.4 51.0 188.7 411.1 2,085.5 1,941.0 Volume handled 230 Lead and its compounds 211.6 2.8 0.8 156.0 0.0 52.1 5,988 231 Nickel 10.6 0.0 0.0 6.7 0.0 3.9 243 Barium and its water-soluble compounds 1.6 0.0 0.0 1.4 0.0 0.2 252 Arsenic and its inorganic compounds 0.4 0.0 0.2 0.2 0.0 0.0 283 Hydrogen fluoride & its 80.7 7.0 32.9 0.0 4.2 36.1 water-soluble salts 304 Boron and its compounds 0.3 0.0 0.2 0.0 0.0 0.1 307 Polyoxyethylene 1.8 0.0 1.7 0.0 0.0 0.0 Properly treated 310 Formaldehyde 7.7 0.3 5.0 2.4 0.0 0.0 2,127 (36%) 311 Manganese and its compounds 102.8 0.0 1.5 100.9 0.0 0.4 346 Molybdenum and its compounds 0.5 0.1 0.3 0.0 0.0 0.1 4 other substance groups 0.60 0.4 0.1 0.0 0.0 0.1 Total 5,987.8 80.2 361.3 1,244.3 2,127.3 2,174.7

58 Status of NOx and SOx Emissions (Japan) Status of polychlorinated biphenyl (PCB) Storage (Japan) On average, Sony’s sites in Japan emitted 8,885 kilograms of NOx in fiscal 2000, a volume which compares favorably with the 11,221 It is obligatory in Japan to store used electric appliances containing kilograms of emissions in the previous year. This improvement was PCB. The appliances concerned include power condensers for initial due to a re-examination of combustion factors by individual sites power reception equipment, fluorescent lighting stabilizers and small, aimed at raising fuel efficiency. low-voltage condensers for TVs. Today, they have almost no SOx emissions by the sites amounted to 1,165 kilograms on applications, except in certain initial power reception equipment. Out- average in fiscal 2000, a drastic reduction from the 8,269 kilograms of-use electric appliances containing PCB are stored at the various emitted in the previous year. Increased use of fuel oils with a lower sites under strict supervision, and their storage status is periodically sulfur content, coupled with a shift to natural gas and other reported to the governments concerned. A law governing PCB alternative energy sources, contributed to the reduction. disposal was enacted in March 2001*. As soon as disposal facilities are fully in place, Sony will promptly dispose of the PCB-containing electric appliances in its care. ■ NOx and SOx Emission Volumes *Law Concerning Special Measures for the Promotion of Proper Disposal of polychlorinated biphenyl FY1999 Number of FY2000 Number of (tons) sites (tons) sites NOx 460 41 347 39 ■ Storage Situation of Electric SOx 289 35 41 35 Appliances Containing PCB

High-voltage Fluorescent lighting Small, low-voltage Small Status of BOD and COD Emissions (Japan) condensers stabilizers condensers for TVs condensers 306 units 21,357 units 43,906 units 33 units

During fiscal 2000, BOD emissions per site increased by about 27% (As of April 1, 2001) year on year. Release of COD also recorded an increase of about 59%. Note: High-voltage condensers are reported to contain PCB in the amount of 40-45% of The increases in BOD and COD emissions stemmed from a drastic their average weight, fluorescent-lighting stabilizers in the amount of double-digit grams and increase in production of printed wiring boards. low-voltage condensers in the amount of a few grams to low double-digit grams.

■ BOD and COD Emissions Volume FY1999 Number of FY2000 Number of (tons) sites (tons) sites BOD 108 46 137 41 COD 60 33 96 34

Waste

Status of Waste Generation

Total waste generated by Sony during fiscal 2000 decreased by 4% from the previous year to 281,000 tons, and the volume of waste ultimately disposed of also recorded a 30% year-on-year decline to 55,000 tons. About 80% of the waste generated was either recycled or disposed of internally, with the recycling rate continuing its steady improvement from the previous year. In Europe, 14 non-manufacturing sites were newly included in the compilation, leading to an increase in the volume of waste of 43%. Waste disposal decreased from the preceding year in Japan, the Americas and the Asia/China region. In Japan and Asia/China especially, the volume of recycled or reduced waste rose by 29% and 65%, respectively, as compared to the previous year. As a result, the final volume of waste disposal fell significantly, by 46% for Japan and 42% for Asia/China.

Although production, especially of digital devices and semiconductors, increased, the volumes of both generated waste and waste disposal Waste declined overall due to improvements in the recycling and waste reduction rates.

■ Waste Generated

(Thousand tons) Volume generated Volume recycled/reduced Disposal volume 150 281,468 tons 226,540 tons 54,928 tons 130.0 125 116.8 119.1 Others 13% Cardboard 18% Others 97.3 99.6 97.6 Alkali 13% Cardboard Others 100 5% 21% 20% 89.5 91.8 Sludge 82.3 Paper 5% 5% Trash Acid Alkali 33% 75 11% 6% 63.9 Metal Cardboard 6% Paper Acid 6% 6% 13% 50 Trash Plastic 7% Metal 22.8 26.1 32.2 35.1 34.9 Plastic 7% Glass scraps 10% 26.3 28.8 Sludge 9% 11% 17.5 Wood 8% Wood Sludge 25 18.2 19.5 Glass scraps Wood 9% Plastic 11% 9% 9% 9% 20%

0 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00 FY JapanAmericas Europe Asia/China Volume =+Volume recycled/reduced Disposal Disposal volume Volume recycled/reduced generated volume (FY2000)

59 Data

Products

Environmental considerations with respect to electronic products can be divided mainly into energy conservation, resources conservation and reduction of hazardous materials. This section takes a close-up view of the most environmentally conscious advanced models in Sony’s major product categories, and indicates improvements in environmental impact achieved during fiscal 1996 to fiscal 2000.

Energy Conservation

Measurement of a product’s energy conservation comprises a reduction of power consumption both during standby and operation. Sony promotes efficient reduction after applying the Life-Cycle Assessment (LCA) approach to analyze and determine the impact exerted by individual products in the various stages.

1. Standby power consumption VHS-VCR System stereo

■ CO2 emission details ■ Transitions in standby power ■ Transitions in standby power (VHS VCR, FY2000 model) consumption by leading models: consumption by leading models: Disposal VHS VCRs System stereos W W 5 4 Components 4 manufacturing 3 3 2 Standby 2 1 1 Manufacturing 0 0 Product 19961997 1998 1999 2000 19961997 1998 1999 2000 transportation Operation With time display ON With time display OFF

In the case of VCRs, LCA reveals that standby power consumption accounts for the largest portion. Reduction of not only power consumption in use but also during standby is thus essential. With respect to the standby power consumption of system stereos, Sony reduced it to 0.5 W in the latest model.

2. Annual power consumption ■ Transitions in annual power consumption Color TV by a leading model: (21-inch) TV kWh/year 140 ■ CO2 emission details (FY1997 model 28-inch TV) 120 Disposal Components Standby manufacturing 100 80 Manufacturing Product 60 transportation 40

20

0 1996 1997 19981999 2000 Operation Products Monaural Monaural (flat) Stereo Stereo (flat)

In the case of TVs, LCA shows that 82% of CO2 is generated during product operation. Sony consequently implemented measures stressing reduction of operating power consumption. Sony reduced annual power consumption in a 21-inch TV as shown above, for example, by enhancing its circuit efficiency. Annual power consumption is the volume of power consumption during one year, calculated based on both power consumption during operation and standby, assuming an average household TV watching time of 4.5 hours a day in accordance with the Japanese Law Concerning the Rational Use of Energy.

Calculation method (Operating power consumption with power-saving function x

Annual power consumption (kWh/year) = 4.5 hours/day x 365 days) + (Standby power consumption x 19.5 hours/day x 365 days) 1,000

60 3. Operating power consumption Handycam MD Walkman ■ Transitions in operating power consumption ■ Transitions in operating power consumption by leading models: Handycam by leading models: MD Walkman W 5 W 0.8 4 0.6 3 0.4 2

1 0.2

0 0.0 1996 1997 1998 1999 2000 19961997 1998 1999 2000 Digital Analogue The Handycam’s power consumption has been reduced mainly by integrating circuits and improving efficiency. Power consumption has shown little change since 1999, but energy-demanding functions such as image quality have improved continuously. Sony also reduced the MD Walkman’s power consumption drastically by developing and introducing an energy-saving power control circuit. Resources Conservation 1. Products As concerns resources conservation by products, Sony has continued efforts to minimize resource input and to supply much greater functionality and service using limited resources. The graphs below show transitions in mass reduction by Sony’s leading two categories, TVs and the MD Walkman. TV (28-inch flat) MD Walkman ■ Transitions in product weight by leading ■ Transitions in product weight by leading model mass: TV (28-inch) model mass: MD Walkman kg g 50 200

40 160

30 120

20 80

10 40

0 0 19961997 1998 1999 2000 19961997 1998 1999 2000

TV sets are among the Sony products that consume the most materials and Sony is implementing measures to reduce resources consumption step by step. Sony has promoted downsizing and mass reduction of portable products such as the MD Walkman. Reduction of 2. Packaging materials Hazardous Materials Sony has implemented measures to reduce environmental impact with respect to packaging that protects products from shock and vibrations With respect to the chemical substances that exert a high impact during transportation. The graph below shows transitions in the on environment, Sony is promoting gradual reduction, substitution reduction of polystyrene foam consumption by whole Sony in Japan. and elimination. The graph below shows transitions in volume of lead solder used in Handycams.

Cost of polystyrene foam/ Products manufacturing volume in Japan ■ Transitions in volumes of lead solder used in leading models: Handycam ■ Transitions in Sony’s cost of polystyrene % foam/total manufacturing volume in Japan 100 DCR-TRV10 % FY1990: 100% 100 80

80 60 60 40 40 DCR-TRV20

20 20 DCR-TRV30 0 0 1996 19971998 1999 2000 1996 1997 1998 1999 2000 Reduction measures include reducing polystyrene foam Sony reduced the ratio of lead solder used per total volume of consumption and conversion to paper materials. Sony achieved the solder processed in soldering as well as component electrodes to target of reducing polystyrene foam use by 50% compared with 1%. fiscal 1990 before its fiscal 2000 target date. Sony is currently promoting reduction aimed at a much higher target. Note: Figures for fiscal 2000 are currently being computed. 61 Data

Progress Review for Environmentally Conscious Items in Major Product Categories

The chart below shows a progress review for fiscal 2000 of the most environmentally advanced models among the major product categories in comparison with the targets set in the Sony Mid-Term Environmental Action Program “Green Management 2002.”

Environmentally Energy conservation Recycling property conscious items Reduction in product Operating power consumption Standby power consumption disassembly time Recyclability rate FY2000 30-50% reduction FY2000 50% reduction FY2000 50% improvement FY1999 Less than 1 W “Green Management 2002” target FY2002 60% reduction FY2002 60% reduction FY2002 60% improvement FY2000 0 W (compared with FY1990) (compared with FY1990) (FY1990 = 100) Color TVs 46% 0.01 W 54% 78% VCRs 68% 0.4 W 74% 62% DVD players 30% (Compared with FY1997) 0.6 W 26% (Compared with FY1999) No change System stereos 78% 0.4 W No change No change 0.5 W MD Walkman 98% (No load power consumption 50% – of AC adapter) 0.4 W Handycams 41% (Compared with FY1997) (No load power consumption – – of AC adapter) Notebook computers – 1.0 W – – Operation 64.2% 0.01 W Mobile phones Standby 88.7% (No load power consumption – – (FY1994) of AC adapter) Playback-only VCRs 77% – – – for business use

General progress reviews are given for the reduction of polystyrene foam, introduction of lead-free solder, reduction of vinyl chloride and reduction of halogenated flame retardants.

Resources conservation Reduction of hazardous materials Environmentally conscious items Reduction of polystyrene foam Introduction of lead-free solder Reduction of vinyl chloride Reduction of halogenated of packaging materials flame retardants FY2000 Elimination from products FY2000 manufactured in Japan Total elimination from models FY2000 50% reduction FY2000 Total introduction One-half reduction in volume sold in Europe “Green Management 2002” target FY2002 60% reduction for products manufactured employed in cables FY2002 (compared with FY1990) in Japan FY2002 Total elimination from Elimination from products models sold worldwide manufactured outside of Japan as well Color TVs VCRs

Products DVD players Total elimination from models System stereos Though vinyl chloride was sold in Europe was not Introduced lead-free solder Reduced cost of polystyrene eliminated from most achieved, although halogen- MD Walkman into some model’s printed foam/manufacturing volume mechanical parts, it is free flame retardants replaced wiring boards, although total Handycams in Japan by 60% in FY1999. continued to be used in some halogenated flame retardants introduction was not achieved. mounting parts. in printed wiring boards and Notebook computers the cabinets of some models. Mobile phones Playback-only VCRs for business use

62 Data at a Glance Environmental Performance Data

Unit: 1 terajoule (TJ) = 1 trillion joule 1 kWh = 10,250 kilo joule Unit FY1996 FY1997 FY1998 FY1999 FY2000 Sony Group Electricity consumption TJ 26,736 28,500 28,489 30,643 30,390 as a whole Gas consumption TJ 4,555 6,089 7,172 7,376 6,370 Oil consumption TJ 2,880 3,211 3,094 3,285 3,513 Water consumption m3 23,767,162 24,561,184 26,907,650 29,420,871 28,619,204 Waste generated Tons 194,273 223,388 256,450 293,652 281,468 Recycled/reduced Tons 109,909 144,395 180,878 215,150 226,540 Disposal Tons 84,364 78,993 75,572 78,502 54,928 Class-II substances Tons 95.75 144.39 41.75 50.65 65.43 Class-III substances Tons 12,189 13,106 10,799 11,222 10,034 Class-IV substances Tons 29,231 24,328 23,162 28,824 31,419 Japan Electricity consumption TJ 12,462 13,235 13,020 14,662 16,467 Gas consumption TJ 2,044 2,194 2,664 2,508 2,849 Oil consumption TJ 2,550 2,763 2,659 2,670 2,768 Water consumption m3 13,820,781 12,714,002 12,954,771 14,383,977 14,117,409 Waste generated Tons 89,467 97,298 91,754 99,634 116,815 Recycled/reduced Tons 51,491 65,823 66,266 84,012 108,399 Disposal Tons 37,976 31,475 25,488 15,622 8,416 Class-II substances Tons 29.00 32.00 22.00 7.40 0.32 Class-III substances Tons 8,089 7,753 6,219 6,166 4,945 Class-IV substances Tons 19,099 14,145 13,937 12,778 17,306 Americas Electricity consumption TJ 7,305 9,613 9,782 9,933 6,972 Gas consumption TJ 1,846 3,138 3,698 3,972 2,300 Oil consumption TJ 15 35 33 34 6 Water consumption m3 5,000,381 5,715,350 6,898,525 7,769,460 5,790,680 Waste generated Tons 63,874 82,261 119,120 130,041 97,578 Recycled/reduced Tons 42,339 56,703 86,257 94,166 71,384 Disposal Tons 21,535 25,558 32,863 35,875 26,194 Class-II substances Tons 0.50 0.81 0.04 0.00 0.00 Class-III substances Tons 2,502 2,578 2,882 3,315 3,328 Class-IV substances Tons 5,225 7,086 6,672 12,654 10,999 Europe Electricity consumption TJ 2,102 2,323 2,392 2,492 2,845 Gas consumption TJ 276 358 413 474 695 Oil consumption TJ 38 72 53 52 96 Water consumption m3 1,746,000 3,558,715 4,211,392 3,863,706 3,793,565 Waste generated Tons 22,762 26,294 26,079 28,849 32,176 Recycled/reduced Tons 12,493 15,946 19,715 23,368 24,327 Disposal Tons 10,269 10,348 6,364 5,481 7,849 Class-II substances Tons 0.25 0.00 0.00 0.00 0.00 Class-III substances Tons 733 1,600 1,012 1,015 937 Class-IV substances Tons 2,531 796 334 763 390 Asia/China Electricity consumption TJ 4,838 3,298 3,268 3,523 4,107 Gas consumption TJ 389 399 397 423 527 Oil consumption TJ 277 342 349 529 644 Water consumption m3 3,200,000 2,573,117 2,842,962 3,403,728 4,917,550 Waste generated Tons 18,170 17,535 19,497 35,128 34,899 Recycled/reduced Tons 3,586 5,923 8,640 13,604 22,430 Disposal Tons 14,584 11,612 10,857 21,524 12,469 Class-II substances Tons 66.00 116.58 19.71 43.25 65.11 Data at a Glance / Environmental Performance Class-III substances Tons 865 1,175 686 726 823 Class-IV substances Tons 2,376 2,301 2,219 2,629 2,724

Note: Data for the 156 sites concerned include some data from sites that have not yet acquired ISO14001 certification, while some data from sites that have acquired ISO14001 certification are not included. As concerns hazardous materials, sites that do not use them (most non-manufacturing sites) are excluded. Japanese data are the values achieved during the 12 months from April 2000 to March 2001. Some European and Asian operations employ data compiled for the 10 months from April 2000 to January 2001 and estimated data for the final two months as fiscal year data. Some sites in the Americas, meanwhile, employ data compiled for the nine months from April 2000 to December 2000 and three months of estimated data as fiscal year data.

Note: The below corrections are made because there were some mistakes in the waste data for Japan, Europe and Asia/China in the fiscal 1999 report. Japan (Generated waste: 102,506 tons → 99,634 tons/ Volume recycled/reduced: 82,006 tons → 84,012 tons/ Disposal volume: 20,500 tons → 15,622 tons) Europe (Generated waste: 30,838 tons → 28,849 tons/ Volume recycled/reduced: 25,032 tons → 23,368 tons/ Disposal volume: 5,805 tons → 5,481 tons) Asia/China (Generated waste: 34,017 tons → 35,128 tons/ Volume recycled/reduced: 12,947 tons → 13,604 tons/ Disposal volume: 21,070 tons → 21,524 tons)

63 Data

*1 ISO14001 Certification Status As of May 31, 2001

*1 The sites subject to ISO14001 certification acquisition are manufacturing sites, and non-manufacturing sites except for those under a certain size*2. *2 The standards for sites under a certain size are under 50 employees for hardware research, development, design, distribution, warehouse and assembly line plants; and under 100 employees for hardware sales, service, software research/production/sales, mail-order sales, insurance, finance and headquarters’ functions at individual companies.

Japan: Manufacturing Sites Japan: Non-manufacturing Sites Europe: Manufacturing Sites

Site Acquired Site Acquired Site Acquired

Sony EMCS Corporation, Kohda TEC*3 May 1995 Sony Corporation, Atsugi Sony Manufacturing Company UK, Ltd. March 1998 Sept. 1996 Sony Chemical Corporation, Technology Center Pencoed Technology Centre No.1 Site in Kanuma*4 Oct. 1995 Sony Family Club Inc., Operation Center*1 Sept. 1998 Sony Manufacturing Company UK, Ltd. Dec. 1996 5 Sony Corporation, Osaki Bridgend Plant Sony EMCS Corporation, Minokamo TEC* Feb. 1996 Nov. 1998 Sony EMCS Corporation, Kisarazu TEC*6 March 1996 West Technology Center Sony France S.A., Recording 2 Feb. 1997 Sony EMCS Corporation, Inazawa TEC*7 March 1996 Sony Toyo Building Site* Feb. 1999 Media & Energy Production France 3 Sony Fukushima Co., Motomiya Plant*8 March 1996 Sony Corporation Gotenyama Site* Aug. 1999 AIWA Wales Manufacturing Center June 1997 4 Sony EMCS Corporation, Saitama TEC*9 May 1996 AIWA CO., LTD.* Sept. 1999 Sony France S.A., Alsace Plant June 1997 5 Sony Max Corporation May 1996 Sony Trading International Corporation* Sept. 1999 Sony Chemicals Europe B.V. June 1997 Sony Italia S.p.A., Rovereto Plant* Nov. 1997 Sony EMCS Corporation, Mizunami TEC*10 July 1996 Sony System Design Corporation (Tokyo Data Center) Sept. 1999 Sony DADC Austria AG Feb. 1998 Sony EMCS Corporation, Ichinomiya TEC*11 Aug. 1996 Hikari Electronics Corporation Dec. 1999 Sony España S.A., Barcelona Plant March 1998 Sony Corporation, Sendai Technology Center*12 Aug. 1996 Sony Corporation Haneda Sony Slovakia spol. s.r.o., Trnava plant Sept. 1998 Sony Hamamatsu Corporation Oct. 1996 Dec. 1999 Technology Center Sony Hungaria Kft., Gödöllö Plant July 1999 Sony Semiconductor Kyusyu Co., Oct. 1996 Sony EMCS Corporation World *Note: Sony Italia Rovereto Plant was sold in April 1, 2001. Kokubu Technology Center Repair Parts Center*6 Dec. 1999 Sony Semiconductor Kyusyu Co., Sony Plaza Co., Ltd. Feb. 2000 Oita Technology Center Dec. 1996 Sony Human Capital Corporation*7 Feb. 2000 Europe: Non-manufacturing Sites Sony Precision Technology Inc., Sony Service Company Ltd. Feb. 2000 Isehara Plant Dec. 1996 Sony Corporation Shibaura Site Acquired Sony Components Chiba Corporation Dec. 1996 Feb. 2000 Technology Center Sony EMCS Corporation, Kosai TEC*13 Jan. 1997 Sony Marketing (Japan) Inc. March 2000 Sony Deutschland July 1996 Sony Semiconductor Kyusyu Co., Sony/Tektronix Corporation May 2000 Sony United Kingdom Ltd., Nagasaki Technology Center Jan. 1997 Aug. 1997 Sony Computer Entertainment Inc. May 2000 Broadcast & Professional Europe AIWA IWATE CO., LTD. Jan. 1997 Sony Broadband Solutions Corporation Sony Benelux D.V. March 1998 Sony Miyagi Co., Nakada Plant/ Sony Systems Service Inc.*8 May 2000 AIWA Deutschland GmbH Nov. 1998 Uguisuzawa Plant Feb. 1997 Sony Corporation Shinagawa Sony Music Entertainment (Holland) B.V., Sony Fukushima Co., Koriyama Plant March 1997 July 2000 March 1999 Technology Center International Service Center Sony Miyagi Co., Toyosato Plant April 1997 Sony Music Communications Inc. Aug. 2000 AIWA (UK) Limited April 1999 Sony Music Entertainment, Production Center April 1997 Jared Inc. Aug. 2000 Sony United Kingdom Ltd., Sony Shiroishi Semiconductor Inc. April 1997 May 1999 Sony Finance International Inc. Sept. 2000 Corporate Services Sony EMCS Corporation, Nagano TEC*14 July 1997 Sony Logistics Corporation*9 Sept. 2000 Sony Music UK Dec. 1999 Sony EMCS Corporation, Senmaya TEC*15 Aug. 1997 Sony Enterprise Co., Ltd.*10 Oct. 2000 Sony Italia S.p.A. March 2000 AIWA AKITA CO., LTD. Aug. 1997 Sony Corporation, Yokohama Sony Music Spain Distribution Center Oct. 2000 Sony Neagari Corporation Aug. 1997 Nov. 2000 Research Center Sony International (Europe) GmbH, DTCE Dec. 2000 Sony Tochigi Corporation Sept. 1997 Sony Corporation, Osaki Sony España Dec. 2000 AIWA HANAIZUMI CO., LTD. Oct. 1997 Dec. 2000 East Technology Center Sony Music France Distribution Center Dec. 2000 Sony Tectronix Corporation, Sony LSI Design Inc. Jan. 2001 Sony Music Entertainment (France) S.A. Dec. 2000 Gotemba Plant Dec. 1997 Sony PCL Inc. Jan. 2001 Sony Music Entertainment (Germany) GmbH Dec. 2000 Sony PCL Hasso Corporation Jan. 1998 Sony System Design Corporation Sony CP Laboratories Inc., Feb. 2001 Sony France S.A. Feb. 2001 (Nagoya Data Center) Sony Information Technology Europe March 2001 Shizuoka Products Center/ April 1998 Intervision Inc. Feb. 2001 Sony Creative Products Inc., Sony Belgium March 2001 Sony Life Insurance Co., Ltd. March 2001 Shizuoka Products Center Sony Semiconductors & Devices Europe March 2001 Sony Taiyo Corporation Jan. 1999 *1 Formerly Sony Family Club Sony Service Centre Europe March 2001 *2 Joint acquisition of Sony Facility Management *3 Formerly Sony Kohda Corporation Headquarters, Sony Engineering *4 Both Sony Chemical’s No. 2 and No. 3 sites have Corporation and Sony Precision Technology Inc., been certified in expanded auditing. Headquarters *5 Formerly Sony Minokamo *3 Including Sony Enterprise Co., Ltd., *6 Formerly Sony Kisarazu Sony Disk Technology, Sony Young Laboratory, Sony *7 Formerly Sony Inazawa Techno Works, Sony Techno Research Corporation, *8 Formerly Sony Motomiya Sony Cinematic Corp., Sony Communication Network *9 Formerly Sony Bonson Corporation and Sony Foundation for Science *10 Formerly Sony Mizunami Education *11 Formerly Sony Ichinomiya, created through the *4 Multiple sites at Headquarters, Nakano, Urawa, acquisition of Ogiwara Electronics by Sony Ichinomiya Kawaguchi, Technology Center, Utsunomiya and ISO14001 Certification Status in October 2000 Utsunomiya Logistics *12 Including the Sony Miyagi, Tagajo plant *5 Multiple sites at Headquarters and Daiba *13 Formerly Sony Broadcast Products *6 Formerly Sony WRPC *14 Formerly Sony Digital Products *7 Merged with CDI *15 Formerly Sony Senmaya *8 Sony System Service Inc. changed its name effective April 1, 2001. *9 Reacquisition following integration of five sites *10 RR merged with Sony Enterprise Co., Ltd., on October 1, 2000.

64 Americas: Manufacturing Sites Asia/China: Manufacturing Sites Asia/China: Non-manufacturing Sites

Site Acquired Site Acquired Site Acquired

Sony Semiconducter Sony Electronics of Korea Corporation June 1996 Aiwa Singapore Ltd. Sept. 1996 June 1996 Company of America Inc. Sony Electronics (Singapore) Pte., Ltd. Sony Marketing Asia Pacific Pte. Ltd. Dec. 1997 Sony Music Entertainment Inc., Pitman Sept. 1997 Sony Display Device (Singapore) June 1996 Sony Chemicals Singapore Pte. Ltd. May 1998 Sony Nuevo Laredo S.A. Nov. 1997 Sony Precision Engineering Center Sony Logistics (Malaysia) Sdn. Bhd. April 1999 Aug. 1996 Digital Audio Disc Co.Terre Haute Dec. 1997 (Singapore) Sony Logistics (Thai) Ltd. April 1999 Sony Electronics Inc. Jan. 1998 Sony Semiconductor (Thailand) Ltd. July 1997 Sony Gulf FZE April 1999 Sony Disc Manufacturing, Springfield Jan. 1998 Aiwa Electronics (Malaysia) Sdn. Bhd. Sept. 1997 Sony International (Hong Kong) Ltd. Sept. 1999 Projection Television of America/ Sony Magnetic Products (Thailand) Co., Ltd. March 1998 Sony China (Beijing), Jan. 1998 Color Television Pittsburgh Sony Siam Industries Co., Ltd. March 1998 Sony Hong Kong Beijing Office Sept. 1999 Sony Display Device Pittsburgh Feb. 1998 Sony Mobile Electronic (Thailand) Co., Ltd. March 1998 Sony (Malaysia) Sdn. Bhd. Dec. 1999 Sony Chemical Corporation of America Feb. 1998 Shanghai Suoguang Electronics Co., Ltd. April 1998 Sony Korea Corporation March 2000 Sony Music Entertainment (Canada) Inc. March 1998 Sony Chemicals (Suzhou) April 1998 Sony South Africa (Pty) Ltd. April 2000 Sony de Mexicali S.A. March 1998 PT Sony Chemicals (Indonesia) May 1998 Sony Australia Ltd. Feb. 2001 Sony Magnetic Products Inc. of America April 1998 Beijing Suohong Electronics Co., Ltd. July 1998 Sony Corporation of Hong Kong Ltd. Feb. 2001 Sony Music Entertainment Mexico S.A. de C.V. April 1998 PT Sony Electronics Indonesia July 1998 Sony Electronics (Singapore) Pte. Ltd.*1 Sony Music Entertainment Brasil (Non-manufacturing Division Companies) Feb. 2001 June 1998 Shanghai Suoguang Visual Products Co., Ltd. Aug. 1998 Industria e Comercio Ltda. Sony Music Entertainment PT Sony Indonesia March 2001 Sony de Tijuana Este S.A. July 1998 (Australia) Ltd. March 1999 Sony Philippines Inc. March 2001 Sony de Tijuana Oeste S.A. April 1999 Sony India Pvt. Ltd. April 1999 Sony Thai Co. Ltd. March 2001 Sony Music Entertainment (Colombia) S.A. May 1999 Sony Music Entertainment Oct. 1999 Sony Music Entertainment (Hong Kong) Ltd. *1 Formerly Sony International Singapore June 1999 Central America, S.A. Costa Rica Sony Music Entertainment Sony Music Entertainment (Argentina) S.A. July 1999 (India) Pvt. Ltd. Oct. 2000 Sony Music Entertainment (Chile) Ltda. July 1999 PT Aiwa Indonesia Dec. 1999 Sony de Amazonia Ltda. Oct. 1999 Sony Electronics (Malaysia) Sdn. Bhd. Dec. 1999 Sony Componentes Ltda. Oct. 1999 Sony Vietnam Ltd. Dec. 1999 Electronics Center Ltda. Oct. 1999 Sony Technology (Malaysia) Sdn. Bhd. Feb. 2000 Aiwa Dharmala July 2000 Americas: Non-manufacturing Sites

Site Acquired

Sony Music Distribution May 2001

*Note: 92 non-manufacturing sites in North America have adopted a collective certification system; they finished self-audit in March 2001 and are expected to acquire formal certification in August 2001. ISO14001 Certification Status

65 Data

Occupational Health and Safety Management System Certification Status As of May 31, 2001

Site Standard Acquired

Sony Chemical Corporation, Kanuma Plant DNV OHSMS standard September 1998 Sony Manufacturing Company UK Bridgend Plant ISA2000 February 1999 Sony Corporation, Sendai Technology Center JACO OHSMS standard April 1999 Sony Manufacturing Company UK Bridgend Plant OHSAS18001 October 1999 Sony Display Device (Singapore) OHSAS18001 October 1999 Sony Fukushima Co., Motomiya Plant JACO OHSMS standard December 1999 Sony EMCS Corporation, Kohda TEC JACO OHSMS standard March 2000 Sony Chemical Corporation, Kanuma Plant OHSAS18001 March 2000 Sony Chemicals Corporation Singapore Pte. Ltd. OHSAS18001 May 2000 Sony EMCS Corporation, Inazawa TEC JACO OHSMS standard June 2000 Sony Tochigi Corporation JACO OHSMS standard July 2000 Sony Corporation, Osaki West Technology Center JACO OHSMS standard August 2000 Sony EMCS Corporation, Kosai TEC JACO OHSMS standard September 2000 Sony Fukushima Co., Koriyama Plant JACO OHSMS standard September 2000 Sony Electronics of Korea Corporation OHSAS18001 September 2000 Sony EMCS Corporation, Mizunami TEC JACO OHSMS standard October 2000 Sony EMCS Corporation, Kisarazu TEC JACO OHSMS standard November 2000 Sony EMCS Corporation, Saitama TEC JACO OHSMS standard November 2000 Sony Shiroishi Semiconductor Inc. JACO OHSMS standard November 2000 Sony France S.A., REPF DAX Plant OHSAS18001 November 2000 Shanghai Suoguang Electronics Co., Ltd. OHSMS (SAC) December 2000 Sony Semiconductor Kyusyu Co., Kokubu Technology Center JACO OHSMS standard January 2001 Sony Chemicals Europe B.V. OHSAS18001 January 2001 Sony EMCS Corporation, Nagano TEC JACO OHSMS standard February 2001 Sony Semiconductor Kyusyu Co., Nagasaki Technology Center JACO OHSMS standard March 2001 Sony Semiconductor Kyusyu Co., Oita Technology Center JACO OHSMS standard April 2001 Sony Corporation, Atsugi Technology Center JACO OHSMS standard April 2001 Sony India Ptv. Ltd. OHSAS18001 May 2001 Sony Precision Technology Inc., Isehara Plant JACO OHSMS standard May 2001

The sites below received recognitions or awards concerning occupational health and safety.

Certification/award Site Country Acquired

Empresa Segura Sony de Tijuana Este S.A. de C.V. (STE) Mexico May 1999 Royal Safety Award Sony Manufacturing Company UK Pencoed Plant United Kingdom May 1999 National Safety Award Sony Semiconductor Thailand (SCT) Thailand May 1999 Ministry of Labor Award Sony Components Chiba Corporation, Togane Factory Japan July 1999 Merit Prize Sony Nuevo Laredo S.A. de C.V. (SNL) Mexico August 1999 The Prime Minister Award Sony Magnetic Products Thailand (SMPT) Thailand September 1999 Ministry of Labor Award Sony Corporation, Atsugi Technology Center Japan October 1999 Ministry of Labor Award Sony Corporation, Osaki West Technology Center Japan October 1999

System Certification Status Ministry of Labor Award Sony Semiconductor Kyusyu Co., Kokubu Technology Center Japan October 1999 Voluntary Protection Program Sony Magnetic Products Inc. of America United States May 2000 Occupational Health and Safety Management

66 Fiscal 2000 External Awards Concerning Environmental Conservation Activities

(In order of receipt)

Award Subject Sponsor

100% recycled magazine paper and an ink with solvent completely replaced 24th Kinoshita-Award by Japan Packaging Institute: R&D Category with soybean oil developed by Sony in cooperation with Oji Paper Co., Ltd., Japan Packaging Institute Shinfuji Paper Co., Ltd. and Dainippon Ink and Chemicals Incorporated Best Factory Award 2000 Environmental and other activities by Sony Mobile Electronics (Thailand) Royal Government of Thailand Prime Minister’s Commendations for Outstanding Contributions to the Greenery promotion campaign by Sony Kohda The Liaison Council for Greening National Greening Campaign Results achieved in environmental activities by Sony Mobile Electronics Prime Minister’s Award for Outstanding Industries 2000 Royal Government of Thailand (Thailand) The Excellent Consumer-oriented Group: Minister of Measures concerning environmentally conscious packaging by the Sony Ministry of International Trade and Industry/Japan International Trade and Industry Award Package Engineering Committee Industrial Association Good Design Award 2000 Sony’s Green Envelopes and Green Packaging Japan Industrial Design Promotion Organization Japan Star Award in Japan Packaging Contest 2000: EPS-free packaging for a computer LCD developed by Sony in cooperation Japan Packaging Institute Electric Equipment Packaging Category Award with Chuoh Pack Industry Co., Ltd. Japan Star Award in Japan Packaging Contest 2000: “Zigzag cut cardboard buffer material” developed by Sony in cooperation Japan Packaging Institute Electric Equipment Packaging Category Award with Rengo Co., Ltd. Environmentally conscious facilities at Sony Center am Potsdamer Platz 2000 Nikkei Superior Trend-setting Factories and Offices Awards Nihon Keizai Shimbun, Inc. (Germany) Italian Ministry of Industry, Commerce and the Ecohitech Award 2000 Results of environmental activities by Sony Italia Handicrafts Recycling activities by Sony Broadcasting Products, Sony Oita, Sony Council for the Promotion of Recycling Chairman’s Award in Fiscal 2000 Kohda, Sony Atsugi Technology Center, Sony Sendai Technology Center, Recycle Promotion Association in recognition of recycling promotional activities Sony Minokamo and Sony Tochigi National Association Promotion of Environmental The Fourth Environmental Report Awards: Excellence Prize A site report by Sony Tochigi Corporation Conservation Regional Award for “Reforestation Campaign in Commemoration of the Reforestation activity by Sony Logistics Corporation (Thailand) Banpong Regional Forest Office (Thailand) Royal Golden Jubilee” Activities conducted to consolidate Sony’s new environmental The Tenth Global Environment Award: Grand Prize Japan Industrial Journal Co. management structure and global environmental activities (Sony Group) Note: Organization names are of those in force at the time of award receipt.

Receipt of the 10th Global Environment Award

Sony received the Grand Prize in the 10th Global Environment Awards, an award presented to the most outstanding company (sponsored mainly by the Japan Industrial Journal). The awards recognize companies or local self-governing bodies that work energetically to implement measures to preserve the environment, with the aim of balancing industrial development with the global environment. Sony’s selection for the Grand Prize was owing to its External Awards new environmental management structure, the core of which comprises the Sony Environmental Vision and evaluations of Network Company, as well as the high evaluation given to the environmental conservation activities conducted on a consolidated Group-wide basis. At the awards ceremony in April 2001, Chairman and CEO Idei gave a lecture on “Environmental Management in the 21st Century” in which he spoke on the importance of conducting environmental conservation activities

in concert with management. Sony 10th Global Environmental Awards presentation ceremony had received the Minister of International Trade and Industry Award in the same awards in 1997.

Chairman and CEO Idei speaking on environmental management 67 Data

History of Environmental Activities and Occupational Health & Safety at Sony

Principles and Organization Action 1974 April Sony Corporation Sony’s General Principle on Occupational Health and Safety established. 1975 July Sony Corporation Sony’s General Rules on Occupational Health and Safety established. Prevention of hazardous materials use and occupational health and 1976 April Environmental Conference formed, chaired by the President. safety promoted in Sony Group operations in Japan. Hazardous waste materials and working environments of Group May Environmental Science Center established. operations in Japan evaluated. 1985 April Sony Corporation of America begins environmental audits. 1989 March Special committee convened to study measures to eliminate CFC use. 1990 August President’s Policy on the Environment disseminated among Sony Corporation staff. October Sony Environmental Conservation Committee organized. 1991 October Policy for Product Assessment formulated. Sony signs the Business Charter for Sustainable Development of the November International Chamber of Commerce. 1992 December Policy on environmental management established. Environmental Fund System, a program supporting development of 1993 January environmental protection technologies, inaugurated. March Sony Global Environmental Policy and Environmental Action Program formulated. CFC cleaning agents eliminated from all production processes of April the Sony Group worldwide. 1994 January Sony OH&S Committee organized. Made independent from the Sony Environmental Committee. February Sony Environmental Award program launched. April Center for Environmental Technologies (CET) established at the Sony Research Center. May Greenplus Project to promote environmental consideration with respect to products launched. July Guidelines for acquiring ISO environmental certification established and introduced. Sony Kohda Corporation becomes the first Sony company in Japan to 1995 May acquire ISO14001 certification. Sony Deutschland Service Division becomes the first non-manufacturing 1996 July site in the Sony Group to acquire ISO14001 certification. October Sony Environmental Action Program revised. Green Management 2000 formulated. 1997 October Operation of Recycle Research Center in Ichinomiya initiated. Four sites in Singapore become the first non-manufacturing December sites in Asia to acquire ISO14001 certification. 1998 February Sony’s Global Policy on Occupational Health and Safety enforced. Composition of Sony Environmental Conservation Committee April revised to give each member a specific responsibility. September Environmental R&D laboratory established at Environmental Center Europe, Germany. The Sony Chemical Kanuma Plant completes the process of October obtaining Health and Safety Management System certification (DNV OHSMS certification). Sony Environmental Action Program implemented uniformly across the November Sony Group worldwide. “Green Management 2002” introduced. Sony completes the process of acquiring ISO14001 certification at all 1999 February 38 manufacturing sites in Japan. Sony Electronics Inc. awarded the 1999 Energy Star Home Electronics March Partner of the year from the U.S. Environmental Protection Agency. April A fire risk survey program launched in Japan. The Sony Eco Plaza environmental exhibition room is opened at May Sony Headquarters. The Sony Manufacturing Company UK Bridgend Plant and SES Sony October Display Device (Singapore) both acquire OHSAS18001 certification. Sony Global OH&S Management Structure Standard November formulated and introduced. Environmental factors incorporated into Network Companies’ evaluations. 2000 April Guideline for the Environmental Risk Management. A fire risk survey program launched for European and Asian operations. Sony Magnetic Products of America, Dothan Plant, recognized May for its Voluntary Protection Program by the U.S. Occupational Safety and Health Administration (OSHA). September Sony China Environmental Conservation Committee established. October Sony Environmental Vision elucidated. Periodic environmental information disclosure involving December advertising and publicity introduced. “eco info” mark introduced. 2001 February Sony OH&S Global Committee convenes for the first time. Sony Mid-Term Environmental Action Program revised. March Green Management 2005 formulated. * Organization names appear as they were at the respective dates; some may not be current.

Note on the paper employed for the Data section The Data section of this report employs 100% recycled magazine paper developed by Sony and a paper manufacturer. We promote cyclical use of resources by making use of recycled magazine paper, which has a low recycling ratio among recycled raw materials. The paper is grayish in color, moreover, because the manufacturing process omits the de-inking, bleaching and coloring processes generally applied to recycled paper in order to reduce environmental impact. The printing ink used is Volatile Organic Compound (VOC)-free vegetable oil based ink with no oil based solvents, developed by Sony and an ink maker. Sony is implementing various measures to History of Environmental Activities and OH&S reduce the environmental impact of packaging and printed materials, including paper and ink. (See page 23/30.)

68 Independent Verification Report

Beginning with this report, Sony has adopted third-party verification by the accounting firm PricewaterhouseCoopers to reinforce the reliability of the data and information collection and reporting procedures employed in this environmental report. Sony has included the verification report here (on pages 70-71) from the perspective of transparency.

Verified Sites

Site Name Country Major Products/Services Sony Corporation Headquarters Japan Headquarters function Sony Corporation, Atsugi Technology Center Japan Research, development and product design Sony Semiconductor Kyusyu Co., Ltd., Nagasaki Technology Center (including the former Sony Nagasaki Co., Ltd., and Fab1, Japan Semiconductor manufacture a semiconductor plant operated by Sony Computer Entertainment Inc.) Sony EMCS Corporation, Kohda TEC (formerly Sony Kohda Co., Ltd.) Japan Manufacture and after-service of video equipment and computer devices Sony Neagari Corporation Japan Manufacture and mounting of printed wiring boards

Sony Computer Entertainment Inc. Japan Development and sales of computer-entertainment system and software titles Sony Life Insurance Co., Ltd. Japan Life insurance business Shanghai Suoguang Visual Products Co., Ltd. China Manufacture of color TVs and CRTs Sony Electronics (M) Sdn. Bhd. Malaysia Manufacture of audio systems Sony DADC AG Austria Manufacture of CDs, MDs and DVDs Sony Technology Center-Pittsburgh United States Manufacture of color TVs and CRTs Sony Pictures Entertainment United States Production of motion pictures and television programs

Following a joint investigation conducted with PricewaterhouseCoopers, Sony Headquarters and 11 other sites were selected for global validation this time, with consideration given to the environmental impact, economic scale and business/regional diversity of the individual sites. A scene from the field trip in Japan, the verification proceedings in Europe and an interview with the Supervising Officer for Environmental Affairs at Sony Headquarters by PricewaterhouseCoopers personnel are shown below. Independent Verification Report

A field trip to the Sony Neagari facilities Verification work at Sony DADC Interviewing Corporate Executive Vice President Sano at Headquarters

The results of the verification are found on the following pages. Sony will continue to work hard to increase the reliability of the environmental report in the future.

69 Independent Verification Report

70 Independent Verification Report

71 A Message to the Reader

Having positioned measures to preserve and improve the global environment as one of its highest priority management issues, Sony is pursuing energetic activities to this end throughout the worldwide Sony Group. Above all, we consider disclosure of environmental information as among our primary responsibilities to society. We are consequently communicating with stakeholders based on a policy of disclosing environmental information globally, quickly and continuously. In line with this policy, we have sought to make this report clear, understandable and transparent. In our commitment to impartiality, moreover, we have introduced third-party verification by the PricewaterhouseCoopers accounting firm beginning with this report in an effort to prevent partial disclosure. We have also adopted Sony’s original environmental accounting for the first time here in the belief that the integration of economics and ecology is essential to realizing an environmentally sustainable society. Environmental accounting is used to show the overall environmental impact and costs of our conservation activities. This is achieved by itemizing and qualifying impacts and monetary amounts arising throughout the life-cycle of our products. We are striving to refine our environmental accounting further, despite the difficulty of determining judgment criteria due to the fact that environmental accounting standards are not yet established, even in advanced countries. It is my hope that many readers will gain a fuller understanding of Sony’s environmental activities through this report. We intend, moreover, to continue our efforts to reinforce our environmental activities unceasingly through effective responses to the opinions expressed by our readers.

June 2001

Sumio Sano Corporate Executive Vice President Supervising Officer for Corporate Environmental Affairs A Message to the Reader

72 Sony Environmental Report Questionnaire

Sony Environmental Report 2001

Thank you for reading this report. Sony believes that communication should be a “dialogue,” and Sony welcomes your opinions and comments. You may send them by e-mail, or use the questionnaire printed on the overleaf for your convenience. Sony would highly appreciate it if you would take a few moments to fill in your impressions, opinions, complaints or advice and return it to Sony. Sony values your opinions highly and pledges to employ them as a reference in determining its environmental conservation activities.

June 2001 Sony Corporation

Corporate Environmental Affairs

Facsimile: +81-3-5448-7838 Facsimile: Corporate Environmental Affairs, Sony Corporation Corporation Sony Affairs, Environmental Corporate Opinions and Impressions of the Sony Environmental Report 2001 1 What is your overall impression of the report? □ Good □ Average □ Poor

How does it compare with the previous (1999) report (if you read it)? 2 □ Improved □ Similar □ Worse How improved/worse?

What do you think of the editorial approach? □ Impartial □ Average □ Biased 3 In what respects impartial/biased?

What do you think of the quality of the information presented? □ High □ Average □ Low 4 In what respects high/low?

What do you think of the quantity of the information presented? 5 □ Sufficient □ Insufficient □ Too much What information is insufficient/unnecessary?

How easy is the report to read? □ Easy to read □ Average □ Difficult to read 6 In what respects easy/difficult to read?

Please use the space below to express your impressions of the report or to make any requests you 7 may have concerning Sony’s environmental activities.

Thank you for responding to this questionnaire. Please check the box below if you wish to receive the next Sony Environmental Report by mail.

□ Yes, I would like to receive the next Sony Environmental Report (scheduled for publication in 2002).

Name: Occupation:

Contact address:

Facsimile: +81-3-5448-7838 Facsimile: Corporate Environmental Affairs, Sony Corporation Corporation Sony Affairs, Environmental Corporate cover1-4(6.23)E 01.6.26 10:47 AM ページ 2

4 Key Questions & Answers

Q1 How does Sony promote environmental management?

A beech tree aged approximately 400 years in the mountainous Shirakami district of Aomori Prefecture, a World Heritage site. Q2 What kinds of environmental considerations is Sony pursuing?

Sony welcomes questions, comments and suggestions regarding the contents of this Environmental Report and the Sony Group’s environmental activities. Please contact us at one of the following five Sony Environmental Conservation Committee offices.

Inquiries

Japan Americas Europe What serves as the basis for Sony’s environmental activities? Corporate Environmental Affairs Corporate Environment, Safety and Health Environmental Center Europe Sony Corporation Sony Electronics Inc. Sony International (Europe) GmbH Q3 What other kinds of environmental communication is 6-7-35, Kita-Shinagawa 16450 West Bernardo Drive Advanced Technology Center Stuttgart Shinagawa-ku, Tokyo 141-0001 San Diego, California 92127-1898, USA Heinrich-Hertz-Strasse 1, D-70327 Stuttgart, Germany Sony conducting? Telephone: 81-3-5448-3533 Telephone:1-858-942-2716 Telephone: 49-7-11/58 58-308 Facsimile: 81-3-5448-7838 Facsimile: 1-858-942-9181 Facsimile: 49-7-11/5 78 98 33 E-mail: [email protected] E-Mail: [email protected] E-Mail: [email protected] http://www.world.sony.com/eco http://www.sel.sony.com/SEL/esh http://www.sony-europe.com/eco

Asia China Environment, Safety & Health Asia Sony (China) Limited Shanghai Branch Sony Electronics (Singapore) Pte Ltd. 43F. HSBC Tower, 10 Hoe Chiang Road 101 Yin Cheng East Rd., Pudong New Area #23-00 Keppel Towers Singapore 089315 Shanghai 200120 P.R.C. Telephone: 65-2233188 Direct: 65-3291405 Telephone: 86-21-68412203 Facsimile: 65-3291400 Facsimile: 86-21-68415757 Q4 How does Sony evaluate its environmental management activities? E-Mail: [email protected] E-Mail: [email protected] For up-to-date information concerning Sony’s environmental Environmental exhibition room: Sony Eco Plaza conservation activities, please visit the following site: Learn about Sony’s environmental activities through Sony environmental conservation activity homepage visuals and demonstrations. We look forward to your visit. http://www.world.sony.com/eco Reservations/Inquiries: For Sony’s latest business results and other information, Telephone: 81-3-5448-4455 please visit the following site: Facsimile: 81-3-5448-2560 Sony homepage http://www.sony.co.jp cover1-4(6.23)E 01.6.26 10:47 AM ページ 1

Sony Corporation Environmental Report2001 Sony Corporation

Entertaining the world, caring for the future

Printed on 100% recycled paper (Data section 100% recycled magazine paper). Printed in Japan Printed using VOC(Volatile Organic Compound)-free vegetable oil based ink. June 2001 Environmental Report 2001 0106-03OP01E